Thanks for this very clear explanation. I think maybe you just blew my mind.
Also, a question occurs to me. Would this scheme still function at a rate other than 50%? If the billionaires would only allow the scheme with the rate set at 45%, it would change the "zero" point, but maybe not much else?
That's exactly correct. At 45%, the top earners would pay a bit less, the bottom earners would receive a bit less, and the break-even point would move to the 45th percentile rather than the 50th percentile. So more people would actually pay net taxes, but the average taxation would be lower.
Also, a question occurs to me. Would this scheme still function at a rate other than 50%? If the billionaires would only allow the scheme with the rate set at 45%, it would change the "zero" point, but maybe not much else?