> I am inclined to believe it comes down to a fundamental error in our current way of taxation.
This is exactly it, what almost everyone fails to notice. If you look at other civilizations that do not impose income taxes, yet were successful, they did not have this entire mess that is the US taxation system. Islam dictates a "charity tax" called Zakat, that is calculated based on net worth, or produce (e.g. for farms and cattle). It is much, much easier system to calculate, and is strictly superior to whatever the US has going, as proof by how they have to keep revising the tax code and "closing loopholes", and proposing new taxes every time.
There are several factors at play here. The most important other factor is that the modern economic system is based on parasitic, and morally bankrupt practices, most important of which is interest/usury. Take these out and the wealth inequality gap will fix itself very quickly.
This is exactly it, what almost everyone fails to notice. If you look at other civilizations that do not impose income taxes, yet were successful, they did not have this entire mess that is the US taxation system. Islam dictates a "charity tax" called Zakat, that is calculated based on net worth, or produce (e.g. for farms and cattle). It is much, much easier system to calculate, and is strictly superior to whatever the US has going, as proof by how they have to keep revising the tax code and "closing loopholes", and proposing new taxes every time.
There are several factors at play here. The most important other factor is that the modern economic system is based on parasitic, and morally bankrupt practices, most important of which is interest/usury. Take these out and the wealth inequality gap will fix itself very quickly.