Yes. Australia has had this for a long time. The rates last FY were:

  Below $54,126 	Nil
  $54,126–$60,292 	4%
  $60,293–$66,456 	4.5%
  $66,457–$69,949 	5%
  $69,950–$75,190 	5.5%
  $75,191–$81,432 	6%
  $81,433 - $85,718 	6.5%
  $85,719–$94,331 	7%
  $94,332–$100,519 	7.5%
  $100,520 and above 	8%
  

The progressive structure helps address the disadvantages, I think. Also debt has no interest, but it's indexed to CPI.