I haven't seen it discussed much, but i actually find it odd that tax brackets have an upper end. The tax rate should be a formula that keeps increasing with wealth.
Then you'd have a point where tax = 100%, or at least where income after taxes doesn't increase with increase in income before taxes.
Thus you completely destroy the motivation of some very important enterpreneurs that just want to earn more than anyone. And they build their business somewhere else.
I agree with Jarek, plus there's a law of diminishing returns from wealth above a certain level. Look at people like Bill Gates, calling for higher taxation and distributing their wealth voluntarily because (i believe) they find their wealth level absurd. Wealth inequality is a mother of lots of evils, and taxation would be the easiest way to balance an economy, which in the end would benefit a capitalist society.
Yeah, I understood that. But I tried to point out that it is really unnecessary as the total amount paid is much higher thanks to the fact that taxes are paid in percents. It's a really nice idea for populists but probably wouldn't be good in reality. What have to be done is limit the amount of loopholes where really reach are able to much less then they should.
