A few thoughts:
An interesting exercise for someone to do would be to project what each team's salary structure would look like under the proposal. I suspect this would have some unintended consequences that Simmons hasn't thought through.
For example: The Miami Heat:
Lebron: $17 million (Franchise bracket)
Wade: $17 million (Franchise bracket) - This is just the cap figure, his real number would be something like $21.5 million.
Bosh: $17 million (Franchise bracket)
That's $51 million right there. With Simmons' proposed $52 milllion hard cap the Miami Big Three functionally have to be liquidated because you can't get 9 more players for $1 million. Given that Simmons has previously written that "The Decison" was good for interest in the league I'm not certain this is something he actually wants to do.
Another issue is that this probably magnifies the advantages of teams in tax free states like Florida and Texas in attracting players when they will get the same amount of money no matter what team they play for.
To pick some more nits: This makes which team drafts you significantly more important which may lead to more players trying to game the draft to get to a specific location or more Steve Francis/Kobe Bryant team picking situations.
Finally, in combination with his loyalty bonus program this section is a really bad idea:
Franchise players can veto any trade — if they accept the deal, they lose their accumulated $500k bumps and revert back to the $17 million cap figure.
You have now made any "problem" Franchise player untradeable. An example: Latrell Spreewell. Spree made the 1994, 1995, and 1997 All-Star teams. He would be a franchise player for the 1997-1998 season under the rubric. In December of that season he chokes PJ Carlesimo. If GS trades him, Spree loses $2.5 million in "loyalty bonuses" for the season, $3 million in bonuses the next year etc. Three years on his contract remaining we're talking $9 million in loyalty pay for Spree, this equates to more than half a season's worth of his Franchise player pay. He has the right to refuse any trades. Golden State is now stuck with Spree after he choked his coach.
This has also given every player who wants to leave his team the ultimate negotiating leverage in terms of trade terms. There is no way that the Nuggets would have gotten as much as they got for Carmelo if the Nets aren't even allowed to enter the bidding due to the no trade clause. No automatic NTCs; make them individually negotiated.