This isn’t true. To take the US tax system as an example it’s much more progressive than the flat tax starter you’re describing, where all income is taxed at the same rate. This does not stop inequality.
> In 2016, the bottom 50 percent of taxpayers—those with adjusted gross incomes (AGI) below $40,078—earned 11.6 percent of total AGI. However, this group of taxpayers paid just 3 percent of all income taxes in 2016.
> In contrast, the top 1 percent of all taxpayers (taxpayers with AGI of $480,804 and above), earned 19.7 percent of all AGI in 2016, and paid 37.3 percent of all federal income taxes. The top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined, who paid 30.5 percent of all income taxes.
In a 2007 interview, Buffett explained that he took a survey of his employees and compared their tax rates to his. All told, he found that while he paid a total tax rate of 17.7%, the average tax rate for people in his office was 32.9%.
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So why is it that Buffett himself doesn't pay more tax? It's because the bulk of his income comes from dividends and long-term capital gains, which are taxed at a much lower rate than ordinary income.
Supposedly if dividends and capital gains were taxed at the same rate as personal income, capital would just go to countries where it's taxed at a lower rate. Supposedly.
I don't think everyone paying the same income tax is what people usually advocate for, but everyone actually paying the full share of the tax.
I think a flat 20% above a certain rate is probably the most 'fair', but what needs to change is remove most loopholes that exist now. So everyone above a certain income level pays the same proportion of their income.
Of course the tax base ends up really top heavy, if you earn most of the income, you pay most of the tax. That seems fair to me.
> it’s much more progressive than the flat tax starter you’re describing
No, "flat tax" is not what I'm describing or advocating.
Did you know that Warren Buffet paid a total tax rate of 17.7%, whilst the average tax rate for ordinary American office workers in his office was 32.9%?
> In 2016, the bottom 50 percent of taxpayers—those with adjusted gross incomes (AGI) below $40,078—earned 11.6 percent of total AGI. However, this group of taxpayers paid just 3 percent of all income taxes in 2016.
> In contrast, the top 1 percent of all taxpayers (taxpayers with AGI of $480,804 and above), earned 19.7 percent of all AGI in 2016, and paid 37.3 percent of all federal income taxes. The top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined, who paid 30.5 percent of all income taxes.
https://taxfoundation.org/america-progressive-tax-system/