>>4
Why not just have all incomes and capital gains taxed at a set rate, and then apply an
exclusion amount as a standard deduction that represents a truly basic level of expense? $10K should cover it. Otherwise, there should be
no exceptions, and the man who makes $100K in income and capital gains, will pay the same percentage as the man who makes $10M.
Of course, that type of system doesn't contain all sorts of bribes and goodies for various special interest groups. Even the middle class was treated as a special interest group with that HORSESHIT mortgage-interest deduction.