Adjustable Taxes on Investment Income and Sales

When we in the democratic capitalist countries want to encourage or discourage certain behaviors we use either taxes or subsidies to influence peoples' choices. Smoking is one example, another is borrowing money to purchase a home. The former is discouraged by being taxed, the latter is encouraged by means of a tax break or subsidy.

But we Americans are going to have to revise our tax code if we intend to stave off fiscal insolvency in the near future. Below is an idea that may take some revision but seems like it would be a step in the right direction.