Replace income tax with Value Added Tax. Keep the EITC until the federal poverty line is reached where the rebate would be capped to make it progressive. All individuals with income would be eligible for a EITC rebate
Create marginal tax on investment income from capital gains, interest, and dividends. Household incomes of $0 to $250,000 a tax rate of 0%, $250,000 to $500,000 a tax rate of 20%, and above $500,000 a tax rate of 40% would apply.
This kind of taxation it would promote working income, promote saving, and discourage spending - which would benefit the trade deficit. The "underground" economy would brought into the tax system. The EITC would keep the progressiveness in the tax code to all income earning households. A marginal tax on investments would only affect the rich.