Here's a thought: how about we set tax rates to a percentage of GDP? I don't have the math skills to establish rates, yet, but it seems to work conceptually:
Assume that income is related to domestic output and that all income is treated equally (wages, capital gains, interest, dividends, inheritance). If the GDP is a fixed number (annually), the ratio between one's income and the adjusted GDP should be easily calculated. As a gross example:
If the GDP is $1 million, and my income is $100, my ratio is 1/10,000 of the GDP, so I'd pay 1/10 thousandth of the federal budget. Obviously there are a lot of other calculations, but the concept is straightforward, rational, and fair. To the billionaires that complain that they contribute to the GDP, they only get taxed to the extent that is true, and no more. One beauty of the system is that it is self adjusting. GDP goes up, taxes go down; budget goes up, taxes go up.
Last edited by NW Ponderer; 03/06/1903:02 PM. Reason: Correcting "autocorrect"