I say tax rates should be decided based on wealth shares.
Break it down like this, brackets set at the 20th, 40th, 60th, 80th, 95th, and 99th percentiles of household incomes.
People in the 20th 40th and 60th percentile brackets pay a tax rate equal to how much wealth is controlled by households in each of those brackets.
People in the 80 and 95 brackets pay twice the share they control.
People in the 99 bracket pay three times, and also can’t hold public office for ten years after the last time they peak this bracket because, objectively, they are doing just fine for themselves and don’t need to be going ahead of others who have actual problems a nation should be focused on addressing.
Also, with very few exceptions like a mortgage on a primary residence or a car loan for a primary vehicle, loans collateralized on capital assets are treated as income for tax purposes.
I say tax rates should be decided based on wealth shares.
Break it down like this, brackets set at the 20th, 40th, 60th, 80th, 95th, and 99th percentiles of household incomes.
People in the 20th 40th and 60th percentile brackets pay a tax rate equal to how much wealth is controlled by households in each of those brackets.
People in the 80 and 95 brackets pay twice the share they control.
People in the 99 bracket pay three times, and also can’t hold public office for ten years after the last time they peak this bracket because, objectively, they are doing just fine for themselves and don’t need to be going ahead of others who have actual problems a nation should be focused on addressing.
Also, with very few exceptions like a mortgage on a primary residence or a car loan for a primary vehicle, loans collateralized on capital assets are treated as income for tax purposes.