We are a compassionate society that strongly believes in equality and fairness. Such noble principles, however, are notably absent from our tax system, which is regressive rather than progressive, meaning that the effective tax rate decreases as income increases. For example, if one earns less than $113,700 in 2013, she will pay 7.65% in payroll taxes but will pay only 1.45% on any income above that amount.130 In addition, low or middle income families spend a higher percentage of their earn...