Would the Flat Tax rate be more or less than then 16.62% that the 400 Richest Americans currently pay?
"Taxpayers on the 95th to 99th steps on the income ladder paid an effective income tax rate of 17.52 percent, according to calculations by the Tax Foundation, a nonprofit research group that favors less taxation and lower rates. Taxpayers in this category earned between $255,000 and $451,000 in 2007, compared with an average daily income of almost $945,000 for the top 400, who paid lower effective tax rates on average. "
- Anonymous10 years agoBest Answer
16.62%? I don't care what that idiot claims, he's WRONG! That's not even close to what the "richest Americans" pay! Try well over 50% when you include state & local taxes!!!!
Dude, I do tax returns so I see this. Nice rant but try a competent source. Check out this one. They have it at 31.2% for federal taxes. Just personal income tax is at 19.4% and that seems low from my experience.Source(s): Obama is not my fault!
- megLv 710 years ago
Income tax accounts for only 46% of the revenues of the federal government and a flat tax less than 16% would bring in enough to replace the income tax. However payroll taxes, which accounts for most of the rest are about 15% ( assuming the employer share is actually paid by workers in reduced wages) on earn income up to $100,000 which means that most people would pay nearly 30%.
If a flat tax were to replace all federal taxes on income and placed on all income it would need to be about 22% which is the share GDP that the government spends.
- bochenekLv 43 years ago
income tax money owed for decrease than 40 six% of the sales of the federal authorities and a flat tax decrease than 16% might want to usher in adequate to interchange the income tax. although payroll taxes, which money owed for an excellent type of a few thing are about 15% ( assuming the agency percentage is truly paid with the aid of workers in decreased wages) on earn income as a lot as $one hundred,000 which signifies that maximum persons might want to pay very nearly 30%. If a flat tax were to interchange all federal taxes on income and positioned on all income it would want to favor to be about 22% that is the share GDP that the authorities spends.
- AnnLv 710 years ago
That is income tax for the federal government.
Then you have medicare, social security, state and local taxes. Also property taxes.
So, someone making say $250000 pays approx. according to this years tax rate.
Federal taxes of $61000
State taxes of probably $15000
City taxes if 1% $2500
Social security of $7000
Medicare of $2700
Then add in property taxes if they have a home.
Now who pays too much taxes?
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- 10 years ago
You are assuming that government growth would stop as well as waste and spending? A flat tax rate will be just as bad unless we get control of the problems that are causing our taxes to increase. You are also discounting all the other taxes a person pays. In the end, the average effective tax rate is much closer to 60%, which is way to high.
- ?Lv 610 years ago
The rich pay like 39 at the high end last time I checked and something like 34 for the middle class. What would happen is the lower earners would have to pay more and the richest would pay a little bit less. The people who advocate 10% tax for everyone flunked mathematics. A flat tax would fall somewhere in the middle close to what the rich pay now. Basically it means a tax increase for about 95% of Americans.Source(s): Algebra
- KenLv 610 years ago
Kinda of blows the theory that the wealthy are over taxed huh? That is about what I paid and didn't make 100k. If the flat tax rate allowed no deductions they would pay a lot more than they do now. Which is why we will never see it.
- Anonymous10 years ago
Significantly less! If everyone - and I mean EVERYONE including businesses - paid without deductions, loopholes, credits, or offsets, the flat tax would only need to be in the 6 to 7% rate ballpark. Think how much more of ALL our money we would get to keep.
- 10 years ago
Everyone should pay - heck at this point I'd almost advocate dividing the budget by the population and sending everyone a bill. Make it perfectly clear what BigGov costs.
- pearlmarLv 710 years ago
Yes, 25 percent.