[JoachimSchipper]

So Alice earning 10x poverty pays 9 (somethings), while Bob earning 100x poverty pays 18 (somethings)? Note that poor Carol earning 1x poverty pays nothing. I'd expect Alice to be rather unhappy with this system.

(Also, if someone ever manages to earn 0 in a year, you'll have to give all of the world's wealth to him/her. ;-) )

[tunesmith]

Alice pays 9% of her $117k income. Bob pays 18% of his $234k income. Those are lower tax rates than the present, so not sure why Alice would be unhappy with it. Carol pays nothing. Floor is the poverty rate, so no one makes infinity.

[njonsson]

Unless I’m mistaken, if Alice pays 9% of $117,000 (i.e., $10,530), then Bob pays 11.7% of $234,000 (i.e., $27,400).

An 18% tax rate would apply to earners of $1,170,000 (i.e., $210,600 in tax).

The high end would be a 63% tax rate applicable to earners of $117 billion (i.e., $73.71 billion in tax).

[tunesmith]

Yes, I got 2x and 10x confused, thanks.