Replace all individual Federal income and estate taxes with a 1-2% annual tax on net assets

If applied universally to all U.S. households, a flat 2% annual tax on net assets more than replaces the revenue from Federal individual income taxes. This tax will be very progressive because most people have relatively few net assets after mortgage debt is deducted from their real property value. Zeroing out Federal taxes on annual income eliminates the ongoing argument about marginal tax rates for wages and capital gains and whether they should differ, and it strongly incentivizes additional income. It also eliminates the rationale for a separate inheritance tax system. Inherited wealth is simply taxed as any other wealth of the beneficiaries. Simple, progressive, clean, and very tolerable (most investments yield more than 2%, so asset value does not necessarily shrink over time).