I'm not sure what you're getting at with 89 vs 90%.
Oh, I was saying that someone just under the poverty line (90%) gets a full prebate on their "flat-distributed" % tax. Someone just over it (89%) get's absolutely no benefit. This is my argument for graduated taxes.
Yes, there are situations where people earn money unfairly, but I don't see that as something the government should be responsibile for policing.
So, in essence: rule of law rests in your own hands. John Doe finds it an offense to his sensibilities when his daughter downloads internet porn, and so he crushes her head in with a baseball bat for her impropriety. Acceptable?
It's an extension of "John Q doesn't like Coca-Cola paying nothing for 5-year-olds in china to bottle, so he decides to not buy Coca-Cola anymore."
More realistic: what happens when Eric Prince decides he'd like an island and doesn't want the natives with it, in this no-law land of yours?