Rich people don't make income though. They use asset holdings to get loans and pay for things instead of taking an income.

At least in the US. Everyone bitches about rich people "paying their fair share" but the reality is that their tax returns don't actually show them making any money.

They fund their life styles with debt and credit, so they are technically always in the red.

The systems are set up this way so the middle class funds most of the taxes.