Question

In the US, we have a progressive tax system, which means higher incomes are taxed at a higher rate. But capital gains are not - they are taxed at a flat rate of 15%. This is an example of an institution, a formal "payment" rule, that affects the "tax game". What would be another way to generate government revenue that may work better than income taxes?

Answer 1

The Fair Tax. Consumption-based, rather than income-based.