Let me start off by saying that it is wrong to tax people for being smart with money! Taxes should be based on the standard of living that you have. Currently the way that the tax system is set up actually discourages people from being smart with they're money because the government will tax the life out of you for any profit that you make on stocks and even more so in real estate and other investments. This would make all Americans smarter with their money because there is nothing that we hate more than paying our taxes. People would save more of their money because there would be more tax incentives to do so. (you wouldnt pay taxes on anything that you save because you arent buying ne thing) In turn this would make the need for things like social security and medicare less so it would be better for the nations economy. Some people say that doing this would stop the economy but it most certaintly would not. People would still buy stuff and most people would pay about the same in taxes but people who sacrifice things they want for a better net worth. And, people who don't take out loans to buy things that they cant afford in the first place would be rewarded because they are not being a burden on the system.