What would the tax rate have to be in order for a flat tax to bring in our current revenue?

Answer 1

The flat tax plan that Steve Forbes has been backing for years is at 17%, so I would assume that is at least proposed to be equal or more than our current revenue

Answer 2

It depends upon which deductions are kept. You can have a regressive tax rate (e.g. a flat tax) but still have deductions. Assuming that all deductions were kept in place, you would probably need between 20-25%. If you eliminated all deductions (which would probably require eliminating all lobbyists and PACs first as many deductions are quite popular), you might be able to get the rate beneath 20%.

For the last year in which they have finished compiling statistics, the total income tax was approximately $831 billion.
With approximately 150 million people working, that is an average tax burden of around $5,500 per person. At an average salary of around $35,000 per person, that works out to about 16-17% (assuming full payment of income taxes and no deductions or credits).

Answer 3

You contradict your self. the modern type publicized that 40 seven% of the U. S. paid no earnings tax is deceiving. in basic terms like your neighbor approximately ninety seven% of the U. S. will pay in federal and state taxes and in keeping with risk 40 seven% of those gets maximum or all of that back as a tax refund. the government nonetheless brings that income, nonetheless makes use of it for a three hundred and sixty 5 days activity loose. A flat tax could be a super income to those making $a million million plus. it can be a detriment to maximum others. And it would not usher in extra sales. No the place close to. and you want a flat tax amassed yet in addition the removal of the IRS. So who precisely is going to assemble, video demonstrate, and enforce this flat tax? would not you in basic terms be growing to be a diverse federal corporation yet calling it something diverse than IRS?

Answer 4

Around 28%

Answer 5

I have only heard a brief example of it but would it include a tax on corperations? would their inventory still count as capitol? I think around 15% is what the radio show mentioned that I had heard.

Answer 6

Most off-the-cuff estimates I've seen say around 15%.

The primary factor is eliminating over 90% of the overhead of the IRS -- printing and mailing the forms, audits, long evaluations over loopholes and exemptions....

I haven't done the math to see if those estimates are correct.

Answer 7

about 50%

Answer 8

I've heard 10% but I don't know if that includes the exclusion for those below the poverty line.

Answer 9

10 or 15%

rich folks don't have to pay taxes that much