$'s, while not unique to the US, tend to make the assumption that we're talking about the US system.
as for why it would be a good way ... I don't know about a GOOD way, merely *a* way.
The reasoning is: the rich are already in a higher tax bracket. They can be paying as much as 30-40% of income received than poor people (depending on various factors, ranging from whether they're paying only on income, or something like capital gains tax -- think the Google founders who only get a salary of $1 a year).
By giving them a tax cut, the rich don't feel like they're being AS fornicated as they were, and it becomes less effort to just pay the lower rate, than to find new and more ways to report lower income.
The Govt takes a short-term loss, for a long-term gain.
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