OK, so let’s forget about dollar amounts and examine this rationally.
First, let’s keep in mind that the company you work for does not pay tax on the wage they pay you. It is a tax-deductible expense to them. Only you pay tax on that money.
You have a son. You give you son allowance from the money you already paid tax on — fair for the government to tax that allowance a second time?
You give you son gifts regularly because he is your son, or for special occasions — again purchased with money you already paid tax on…and you get to pay sales tax on top of that. Fair for the government to take a third tax dip on those gifts?
Your son turns 16 and you give him a car (OK, you give him your used car because you had your eye on that sweet red sport model). Per your logic you (or your son) should need to pay tax for the value of the car (gift) and also pay sales tax (again) along with the registration tax. Fair?
The point here is that as individuals we have already paid the tax. When we give our stuff away (or die), we don’t get to deduct what we are giving away from our taxes like a business paying wages would. No indeed, the government takes a double heaping helping.