![]() And, given the ease of compliance, perhaps we don’t need as many IRS agents. It’s about closing loopholes and making tax compliance easier. It is the sort of tax system Ronald Reagan was trying to implement. This is not a “sock it to the rich” tax system. So, the flat tax system as proposed would see lower average tax rates in spite of there being no deductions. $200,000 to $500,000 / Current 23.7% / As Proposed 23.9%Ī key point is that while the average tax rates under the current system are computed against adjusted gross income, the tax imposed used in that calculation is after deductions. (It is worth noting that we revert to the former personal income tax system in 2026, so use of adjusted gross income is relevant.) For legislative types in the crowd, the proposed system would be revenue neutral.īased on the same statistics published by the Tax Foundation, here is what would happen to average tax rates for those with incomes below $500,000:īelow $60,000 / Current 4.0% / As Proposed 0.0% Then, let’s apply a 30% flat tax on adjusted gross income above that $60,000 standard deduction - hence, the “30” in the title. But, let’s consider raising it to $60,000 - hence, the “60” in the title. Ĭurrently, we have a high standard deduction by historical standards.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |