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At a minimum, the FedGov has to eliminate the payroll tax and tax everybody through a graduated progressive tax. The problem with the payroll tax is that a large number of people have no concern about what the income tax rate is, because they do not pay it. The payroll tax, however, is accepted because of the fiction that people are "putting their money in" to Social Security, and that they will be able to take "their money" out later.

The Democrats would scream bloody blue murder before they eliminate the payroll tax, because it is central to the fiction that Social Security is a savings plan, rather than just another government entitlement. But everything about the payroll tax is deceptive, including the amount actually paid. People have no idea how much their employers are kicking into this Ponzi scheme.

A rational plan would be to eliminate the payroll tax, both the employee and employer share, and start the income tax at 12% on the first dollar earned, going up to about 30% for the top marginal rate. And eliminating withholding, so the citizenry needs to write out a check of exactly how much they have to pay to the FedGov every quarter, wouldn't be a half bad idea.

Any tax scheme should be based solely on collecting revenue for legitimate government functions and issues of "fairness" and the like should play no role. These other issues should be dealt with in separate and distinct legislation.

Opponents of progressive taxation would be well advised to focus their arguments on job creation noting that higher income people save more and that an economic truism is that "savings equal investment". I don't have any current statistics but I would not be surprised if it takes about $100,000 to create a single new job. That $100,000 doesn't come from the government but must come from those with savings,i.e. capital formation.