If federal income tax was abolished, and only a flat income tax of $1000 was the rule?

Question

and everything else stayed the same as far as taxes...what would this country be like?
(thats $1,000 per person or corporation earning more than $25,000 per year)

Answer 1

We have a population of about 300 million.

The estimate for the next fiscal year is that we will spend $261 billion on interest alone. Even if you assume one corporation for every two people, that would leave a grand total of $189 billion to fund all of government (and that assumes that every person and corporation has earnings of more than $25,000 per year). Excluding social security, we spent almost $1.8 trillion last year.

I have trouble imagining what we could do on that type of revenue or how we would function. Defense spending alone exceeds the type of revenue that would be generated by switching to this drastically reduced income tax. Even after eliminating the $35 billion spent on embassies and foreign assistance and the $47 billion spent on the federal court system, the federal prisons, and the Department of Justice, you have very little left to cut without really harming the people of this country.

Answer 2

State taxes would take a jump and a half. We already have seen when the President cut back the funding for schools. We would have little to no military.

Answer 3

Well...we can kiss border security, Homeland Security, the FDA, the CIA, the US Army, the FBI, the DEA, the IRS, the FAA, the Pentagon, the National Park Service, etc., etc,. good bye...

Answer 4

as long as you pared down the salaries of everyone making over 1 million...That means a Barry Bonds would make about 1.5 million a year...and include a sales tax of about 10% (that includes anything)...I'm ok with it

Answer 5

Are budget would be less than half of what it is now. So say goodbye to any social programs, defense spedning, or getting new roads built

Answer 6

We'd have to get rid of 80% of govt programs -- pare it down to the bare minimum -- which would suit me fine.