I'm continuing off of the concept for a dream nation which @x0x7 started a while back. I cannot find the original thread. Basically: if you could setup your own nation, what tax policy would you instate?

There are ancaps here and there's questions about the morality of such a thing. This is a separate discussion. Understandably, almost every nation currently in existence will convince you that taxation is unethical. But good things can still come from taxation. This thread takes into account that people still have to compete with other governments and just takes a practical approach. Discussing fundamental morality is outside the scope of this thread.

I would fix income tax at 10%. There is no need for a tiered tax because higher earners will automatically pay more money in absolute terms. A tiered system robs people of motivation to work harder. This low, fixed rate creates upward mobility.

The focus is instead on capital gains and inheritance tax. The former is fixed at 50% on gains made from savings, investments, and homes. Inheritance tax is 100%. The idea being that during life, you benefit from what the State provides and have upward mobility, but after death, you give back to the community and don't favour your children, who likewise benefit from the state and can maintain their upward mobility. Every individual has the responsibility and opportunity to make a living for themselves, with aid from the State, but along with that comes the necessity of starting from scratch for each individual, at least in terms of capital. Moreover, in order to be truly finished here and move on to the next world, one must be ready to distance themselves from all attachments including those toward family. To the dying, everyone belonging to the state should be considered family equally. This should even be the case for the living, only then can people be a folk.

As you can see, spirituality is deeply intertwined with the state. By returning the sacred to people's daily lives, depression is combated. That is also the reason why the income tax is 10%, so that the State can be seen as the equivalent of a church. The integration with religion should also increase volition in paying taxes so as to combat evasion by its roots. It's the State's responsibility to keep people motivated to pay taxes by making them feel part of a greater whole, much like the National Socialist party was able to do.

This entire tax system is geared toward actually taxing the rich. Capital gains and inheritance taxes are much more effective at that. The burden is lifted off of the middle class while an unhealthy greed becomes pointless, because you only have until your death to spend your money. No more intergenerational wealth and power concentration in families.

Do you like this tax policy? How would you tax people instead? Discuss.