[Scary_Tiger]

[ QUOTE ]
Graded tax systems magnify much of your point.

[/ QUOTE ]

Now in 90% Taxland, the 80,000 guy pays full taxes on the top 45,000 of his salary and we'll go with 0% on the first 35,000. The 40,000 guy pays only on the top 5,000.

In 90% Taxland:

After Year 1 39,500 135,500
After Year 2 79,000 171,000
After Year 3 118,500 206,500
After Year 4 158,000 242,000
After Year 5 197,500 277,500
After Year 10 395,000 455,000
After Year 20 790,000 810,000
After Year 23 908,500 916,500
After Year 24 948,000 952,000
After Year 25 987,500 987,500

Ok, I was wrong, it didn't magnify it, but it had no effect.