Eliminate Capital Gains tax, all income is taxed as income.
All tax rates are lowered the effective tax paid for each tax bracket.
All deductions are eliminated except for primary residence.
Two new brackets are created:
>2M 54% tax rate
>10M 70% tax rate.
A flat percentage income tax is progressive. The more one earns, the more they pay. If the flat tax is 15%, someone who earns a million pays $150,000, and someone who earns $30,000 pays $4,500. The richer someone is, the more they would pay.
A flat percentage income tax on all income from all sources is progressive, fair, and simple.
Using your reasoning, sales and property taxes are also progressive, because wealthy people purchase significantly more goods and properties, which are frequently more expensive than a middle class person would buy. Thus, the rich end up paying more taxes.
You may think a flat income tax rate isn’t progressive enough, but it’s not a regressive tax.
- No one pays more than they owe, that would be ridiculous.
- A complicated tax code greatly favors large corporations and the rich since they can afford to hire experts to comb through the law.
- One party's loophole is another's incentive or tax-break. Congress voted them in, it is perfectly logical for people and businesses to make use of them.