In nature there is a efficiency in size. As things get bigger, they get more efficient. The metabolism of animals is high when the animal is small and less when the animal is large. The same is true of income. A poor family will spend all of their income on necessities. The wealthier family will spend very little of their wealth on necessities. Applying the same scale found in nature would result in the following tax rates. The tax rate includes ALL taxes and deductions including social security.
Income Low Income High Tax Rate
0.00 25,000.00 0.000
25,000.00 250,000.00 0.292
250,000.00 2,500,000.00 0.499
2,500,000.00 25,000,000.00 0.645
25,000,000.00 250,000,000.00 0.749
250,000,000.00 2,500,000,000.00 0.822
The advantage of a progressive tax rate is that a company would opt for quality, growth and job creation rather than income if they knew that their surplus income would only go to government. Hence, more jobs would be created. Products could be sold cheaper. Government would have more revenue and hopefully, no deficit.
As private sector jobs increase, government could be made more efficient and make their manpower available to the private sector according to the needs of the private sector.
Furthermore, small companies thrive as the owners would have a fighting chance since their tax rates are less. More people would have more money. That in itself would be conducive to a more robust economy.