I live in the USA where Individual Income Tax is the largest source of the Federal Government's revenue. Add in Social Security and Medicare taxes and it makes up for a whopping 86% of revenue for the United States government.
Only workers pay these Income, SS and Medicare taxes. If you are making money without working, from investments etc, it is subject to other taxes, but not Income or Social Security or Medicare taxes.
Taxing INCOME as opposed to taxing WEALTH is a huge inequity.
We shouldn't tax income at all. There's so much wealth in the United States (like 30%+ of the whole world's total wealth!!) that we could simplify the tax code pretty radically and easily pay for whatever the fuck we want to.
The US government spent 6.7 Trillion is 2022.
In 2021 the total wealth in the USA was 145.8 trillion dollars.
Just tax the wealth like 4%… boom everything is paid for.
No income tax. No need for ANY other federal government taxes at all. Simple. You owe 4% of your WEALTH at the end of each year.
A ton of people talk about parking their money in the stock market and banking on a minimum of 4% growth… great! That part is for taxes. Sounds like a fucking sustainable system to me.
Can you imagine the economic BOOM that removing income tax would create??? Workers would have money to spend… It'd be glorious.