> Now everyone pays e.g. 30% but gets a $12,000 credit, so someone who makes $40,000 is effectively paying zero, someone who makes $80,000 is effectively paying 15% and the effective rate approaches 30% as the number goes up.
This only maybe works if you count capital gains as regular income. Otherwise they do the Steve Jobs $1 salary thing.
> This only maybe works if you count capital gains as regular income.
Yes, that's how a flat tax works. It's flat, for everything.
The nominal reason capital gains has a lower rate is that the amount of the gain is calculated without respect to inflation. But that's dumb; just use the normal rate and actually do the inflation adjustment from the time of purchase instead.
This only maybe works if you count capital gains as regular income. Otherwise they do the Steve Jobs $1 salary thing.
Even the capital gains can be largely evaded. https://www.propublica.org/article/billionaires-tax-avoidanc... https://www.propublica.org/article/lord-of-the-roths-how-tec... etc.