Where do the 'wealthy' not pay the top rate?
Why do 'FairTaxers' say there is great evasion under the current system, but can't believe anyone would even try to evade a 30% sales tax?
The wealthy pay smart, talented people to help them pay as little tax as necessary to comply with our complicated tax code. The very wealthy try not to earn "income", because it is heavily taxed. Tax shelters, tax free bonds, capital gain income, and paper loss techniques greatly reduce the effective tax rate they pay. In short, at 36.9%, there is an incentive to evade, and they arrange their finances to pay less tax. Perhaps under a NRST, they could arrange their finances and pay those smart talented people to more efficiently use their capital and help propel the economy forward. Income tax inserts waste and negative productivity at levels most people never consider.