Though it's still extremely unfavorable for people that work sporadically. If I work hard for years then retire early, that means I have to keep paying tax in retirement for the money I earned years ago.
In the example of my brother, lets say he doesn't earn any real money until he's 40.. so he pays very low taxes until then, then starts making the big bucks... at that point the average will never catch up to him before he dies, and he will have not paid enough tax for the money he earned.
It sure is an interesting idea, I just can't see how it would work out.
Though it's still extremely unfavorable for people that work sporadically. If I work hard for years then retire early, that means I have to keep paying tax in retirement for the money I earned years ago.
In the example of my brother, lets say he doesn't earn any real money until he's 40.. so he pays very low taxes until then, then starts making the big bucks... at that point the average will never catch up to him before he dies, and he will have not paid enough tax for the money he earned.
It sure is an interesting idea, I just can't see how it would work out.