Yeah, I understand that, my point is that I think taxes would be better collected based on spending rather than income, with certain exemptions for necessities. If you want to disagree please explain your reasoning rather than stating a fact that we don't disagree on.
Not necessarily. I may have more take-home pay per year but at certain points in my career I have made less per hour than less-skilled workers simply due to the fact that I was salaried (read: slave) and worked a godawful number of hours.
In your example you do. You stated an example using an hourly wage and give a counter example using salaried position. I am salaried, when it is crunch time I make near what I made at a grocery store. As annoying as that is it has exactly zero to do with taxation.
IMO (aka these are basically gut feelings, not well researched thoughts) taxing spending exclusively would be devastating to our consumer based economy. Exempting essential items means every deep pocketed corporation will be pushing to have their products labeled as essential. You could fight this by just exempting food in general I suppose. My main concern is that this tax rate would have to be very high (25%+) to completely make up for no income tax. Now a federal sales tax or luxury item sales tax combined with a reduced income tax might be ok, but you get the whole double tax argument and I am fairly sure that if you don't completely remove the income tax it'll creep up over time anyways and then the sales tax would just be an added extra revenue stream.
I have no problem with a progressive tax scheme. As someone who is paying more than my 'fair' share I don't have a problem with it. That doesn't mean I like the level of government waste and spending, it doesn't mean I think the brackets are set up correctly or 'fairly' even with the consideration that progressive tax is fair. I'd like to see AMT go away. I'd like to see most if not all exemptions/deductions/credits go away. I have no problem with lower incomes paying no taxes but the fact that some get extra money back beyond what they paid is plain dumb. We have entitlement systems in place without writing checks to people.
I'd like to see progressive tax structure. I'd like it to be straight based off of income, no deductions, no loopholes. All income taxed the same. The first X dollars at this rate, next at this rate and so on. The first bracket would essentially need to be tax free. Flat tax changes across all brackets possible with regular majority but increases or decreases in a single bracket either impossible or require a super majority. The brackets should be indexed by some decent economic measure (real inflation, average income, some other great measure I don't know about).
I think a big problem with our current system is that the higher brackets are taxed higher than they need to be because of the large number of loopholes. So you are expected to play the money shuffle game. I don't think the government should be in the business of sponsoring behavior (buy a house! Have some kids!) they should take their piece based on income and what you do with it should be your business.