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It would also mean that sufficiently rich people pay only 5% taxes on their income.

The bigger problem with taxes is that companies are not paying their fair share of taxes in the countries where they generate revenue and profits.

Also, this kind of progressive tax reduction should only apply after the company is public. So the clock for VCs, founders, etc only starts at the time of the IPO.

This would ensure all the early stakeholders are also aligned in investing in the long-term success of the business.

Currently, these early stakeholders are more likely to be focused on cashing out and having a liquidity event.

Could always tax other things, like consumption, inheritance, or carbon emissions.

Consumption taxes hit poor people harder than rich people. Inheritance might work, and carbon emissions might also work if you have a tax-and-rebate system so that poor people can still afford stuff.

Consumption taxes can give rebates just like carbon taxes. A somewhat popular national sales tax proposal a few years back would have done it that way.

https://en.wikipedia.org/wiki/FairTax

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