Consumption taxes — that is the right and fair way to do it. More than that, it is simple for the people and for the government. Too bad politicians don’t want simple.
Further, it can be implemented just as easily as it writes down on paper.
Think about it. If you have money you spend it and pay tax. If you don’t have money you don’t spend it, so don’t pay as much tax. Save money? No problem, at the time you (or your heirs) start spending that money tax will come out.
Worried that the super-rich won’t pay enough and the poor will be over-burdened? Just have higher tax rate for luxury items, middle tax rate for general want items, and no tax for necessities.
Course, the politicians will get involved and muddy up the waters — trying to argue over what is necessity and what is luxury. Politicians who want big government will want to make a million distinctions to squeeze as much dough out as possible. Politicians who what smaller government will want to keep it simple.
In the end, small business will be damaged because the politicians will royally screw up the consumption tax idea. Small businesses will be unable to keep up with sales tax codes, driving their costs so high they shut the doors.