I like this deal:  "Keep it simple, tax every dollar equally. No special reduced rates for money not earned by employment. Tax all money the year earned unless placed in a 401 type account. Tax all money collateralizing tax differed income. Give a standard deduction based on the federal poverty rate and tier tax brackets on multiples of that rate. ie: 2x's rate 0%. 2-5x's 10%, 5-10x's 15%, 10-20 x's 30% 20x's and beyond 45%. Plus dump the caps on Social Security and Medicare."