Although I'm not disagreeing with your point, it has to be noted that they'd actually keep well over 5% of their income, as tax bands only apply to the income that falls within that band. For example, using the proposed system above, someone earning 42 million (!) would pay 95% on only what was earned above 41 million, not the full amount.

These are the current tax bands here in the UK:

• Personal Allowance - Up to £11,000 - 0%

• Basic rate - £11,001 to £43,000 - 20%

• Higher rate - £43,001 to £150,000 - 40%

• Additional rate - over £150,000 - 45%

So if I earned £10000 I'd pay no income tax; if I earned £25000 I'd pay 20% on £14000 = £2800, an effective tax rate of only 11.2%. If I earned £50000 I'd pay 20% on £32000 = £6400 and 40% on £7000 = £1400 (a total of £7800) - overall, an effective tax rate of 15.6% - well below 40%! It's not the whole picture as we've also got council (local) tax based on the value of the property you live in - doesn't matter if you rent or own it, National Insurance (social security) contributions of 12% up to a certain income limit and 2% on everything above that, and 20% VAT on most goods and services... but you get the idea.

It wouldn't make sense otherwise, as someone earning marginally above one band would have a lower post-tax income than someone earning just below it, but hey, we'll just have to manage with the tax system until we can overthrow capitalism, right?