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Originally Posted by DFINITLYDISTRUBD
… I have always thought a flat all inclusive tax of 10 percent would be the way to go. "All inclusive" meaning one tax covering all branches of govt. paid by all citizens 10 percent from the poorest to the richest
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In fiscal year 2004, the total income of individuals in the US was about $6,700,000,000,000. The total amount of federal income tax paid was about $1,922,000,000,000. In order to provide the US federal government with the same amount of money, a flat tax of 29.7% would have been required.
For the federal government to have taken in as much money as it spent (that is, not had a $307,000,000,000 defecit), a flat tax of 33.3% would have been required.
These numbers include only federal income tax.
I believe you are substantially underestimating the percentage that would be required for a comprehensive flat tax, unless government spending is dramatically reduced.
