[fyz]

This is the right take. When you get to a certain level of income/wealth, it's all about figuring out ways to:

1. shift earned income into capital gains (e.g., private equity carry, small business earnings into equity vs salary)

2. defer taxes (401k, mortgage deductions, 1031 exchanges on real estate, etc)

3. avoid taxes (shift jurisdictions)

4. get accountants, lawyers, and lobbyists to figure out additional ways to lower tax burden

I'm not saying the government is efficient or that 100-200k incomes should be taxed more, I'm just saying that's the game as it stands. Tax expenditures are the ways the government gives (rebates?) money back, mostly to the wealthy.