Wealthy individuals already pay a far lower rate of tax on their income from investments than employees do on earned income. For a single filer in 2023 the sta

Wealthy individuals already pay a far lower rate of tax on their income from investments than employees do on earned income. For a single filer in 2023 the standard deduction is $13,850. After that income is taxed differently. Income tax rates for single filer earned income (excludes social security tax of 6.2% each for employee and employer up to $160,200): 10% $0 to $11,000 12% $11,000 to $44,725 22% $44,725 to $95,375 24% $95,375 to $182,100 32% $182,100 to $231,250 35% $231,250 to $578,125 37% $578,125 or more Long term capital gains tax rates paid on most investment income (excludes 3.8% NIIT of 3.8% for those with income over $200,000): 0% $0 to $41,675 15% $41,676 to $459,750 20% $459,750 or more It's perfectly possible for a flat tax to be far more progressive than the tax system today, though its rate would be far higher than 20%. The highest effective marginal tax rates are often faced by those on lower incomes as the various transfer programs (earned income tax credit, medicare, healthcare subsidies, etc.) have uncoordinated phase outs. In 2012 it was particularly egregious and effective marginal rates approached 100% for those earning around $20,000. https://johnhcochrane.blogspot.com/2012/11/taxes-and-cliffs.html https://johnhcochrane.blogspot.com/2012/11/taxes-and-cliffs.... Personally I think it would make more sense for everyone to pay a flat tax of say 50% paired with a basic income for all (including children) and publicly funded healthcare.