1) The tax rate is not perfectly progressive; in fact as you describe it isn't progressive at all. If ALL income is taxed at a flat rate, there is no progressive increase in the marginal rate by definition. A "progressive tax" isn't dependent on the source of the income, only on the delta in marginal rate as incomes rise.
2) No rational person eschews more income simply because they'll pay X+dX% on each marginal dollar instead of just X%; such an action is just not on the radar of any rational actor.
3) No argument regarding the simplification of the code, however "which would also increase revenue" is a pretty extraordinary claim you haven't backed up
4) No argument here
5) Demonstrably untrue; the government will still have--and will still act on--plenty of things to "manipulate" social policy (e.g. by the award of contracts, enactment of other legislation, etc.)
6) This is just flat-out unproven assertion
So no, "we" don't see "Libertarian thought" as being both "MORE 'fair' AND more compassionate" at all.
2) No rational person eschews more income simply because they'll pay X+dX% on each marginal dollar instead of just X%; such an action is just not on the radar of any rational actor.
3) No argument regarding the simplification of the code, however "which would also increase revenue" is a pretty extraordinary claim you haven't backed up
4) No argument here
5) Demonstrably untrue; the government will still have--and will still act on--plenty of things to "manipulate" social policy (e.g. by the award of contracts, enactment of other legislation, etc.)
6) This is just flat-out unproven assertion
So no, "we" don't see "Libertarian thought" as being both "MORE 'fair' AND more compassionate" at all.