Why not set tax brackets based on assets?
Why base the brackets on income?
I understand why taxation of income makes sense, but if the point of a progressive tax system is to shift the burden onto those best able to bear it, isn't an asset test, rather than an income test, the best mechanism to do that?
More, an asset test would spur the economy, since it would reward spending (the lower your assets, the lower your tax rate).
You'd have to net for certain liabilities, and ignore certain baseline assets (up to XYZ amount for a car or house, for example) . . . I'm literally typing this as I think it up, so perhaps I'm completely off the wall right now. What am I missing?