The tax problem is actually relatively simple to solve. Tax at the point of consumption. Unfortunately, people would rather have an ineffective game of cat and mouse where they FEEL like it's progressive, even though the rich still aren't paying.
I haven't read the whole report, but this was studied in 2005[1] and they had to add a "Family Credit" (basically a UBI) of 500-1000$ per month to balance it out, and recovered approximately 65% of individual and corporate income taxes.
1. https://govinfo.library.unt.edu/taxreformpanel/final-report/...
High sales tax on all “new” products. None on used. A check to everyone each month so that poor don’t suffer from it.
Basically eliminates the IRS, and much of the Tax compliance / avoidance industry. Stops a lot of the tax nonsense that corporations and congress loves.
Tariffs are already used a lot.
If you polled the top brackets I think you'll find that they are more than happy to continue with our current tax system.
A great portion of my taxes goes to military and police. Wouldn’t they just collect the money push come to shove? They certainly have the capability, but possibly not the will.
As income taxes rise there’s a clear pattern of altered compensation like stock grants, expense accounts, etc.
For example, a company can lease an apartment for you to live in. That expense is a write off and isn’t subject to FICA taxes.
Instead of giving you $40,000 in cash which would cost 30% in FICA between you and the company plus personal income tax to you, you can live in a nice $3500/mo apartment you would otherwise be paying for in after tax dollars.
Instead of you paying $800/month+ for a Tesla model X lease with your after tax dollars the company can pay for it, write it off, and again they’re saving 15% on taxes and you’re saving > 40% on that $10,000 and pocketing more of your after tax income.
I'm not an accountant or a tax lawyer, but it doesn't look like that's the case according to the IRS's website. Housing is only exempt if it's "Lodging on your business premises"[1]. A tesla would also likely not be exempt for a typical office worker[2]
[1] https://www.irs.gov/publications/p15b#en_US_2021_publink1000...
[2] https://www.irs.gov/publications/p15b#en_US_2021_publink1000...
Very simplified version: we can spend up to $1k/yr on fitness related expenses and get them reimbursement. We submit a reimbursement request, and if it gets approved, I get the money back in my account. The HR page explicitly warns that any reimbursement received will count towards your income tax.