[tossandthrow]

I really agree in all your points, and the the 10% would be the proposed practical middle ground - but it is neither a good model.

I don't know how to tax this.

But I can identify the issue: You can channel your revenue into a non-taxible assets that you can bring into the next accounting period tax free.

Regardless of this is stocks, bonds, gold, unsold inventory, or IP, that is not fair.

I would hope for someone to device something that is fair and easy to understand. And then I would hope for them to get it through to the politicians.