How much would a flat tax need to be

Free for Simple Tax Returns. Maximum Refund Guaranteed. Instead it is complicated so that the wealthy can keep a lower tax rate. This punishes the middle class.

The wealthy can afford lobbyists to keep it.

It hurts the poor and increases the economic gap between the rich and poor. We actually need to close loopholes and reduce special treatment in our current system of taxation. If someone making one million per year has to pay of his income in taxes, he still has netted $ 820for the year , a. Self-employed individuals submit the full amount on their own. Medicare, regardless of how much they earn. A tax would make a much bigger dent in the budget of someone making $ 20than someone making $20000.

For example, federal revenue was $ 3. Half of that comes from income taxes.

Corporate taxes only contributed. The problem is that this would shift a lot of the tax burden away from the wealthy towards the poor and middle class. For a household making $ 0000 that would represent $100in tax. Subtract the amount of tax you have already had withheld this year (including an estimate of how much more will be withheld before you’re able to submit a new Form W-4). Get a Jumpstart On Your Taxes!

Industry-Specific Deductions. Get Every Dollar You Deserve. File Taxes From Your Home. Each rate corresponds to a tax bracket. According to the CBO, the lowest quintile households in the United States pay an average effective federal tax rate of percent and the top quintile pays an average rate of percent.

Under Herman Cain’s so-called 9-9-plan, Americans would pay a flat percent rate on their. Although a flat tax seems fair from a percentage standpoint, as a tax would be applied to all incomes, a greater share of a low-income household’s disposable income is affected. At $20per year, a $0tax bill would allow for just $10(less any state taxes) for expenses. Belarus has a percent flat tax, Bolivia’s flat tax is percent, and Hungary’s is percent, to name just a few. In particular, Hong Kong’s success under a flat tax system needs little introduction.

Its simple and low tax rate made Hong Kong one of the world’s most attractive places to work, invest and live. Complexity is a hidden tax that requires record-keeping, form preparation, lawyers, accountants and other resources to comply with the current system.

A wealthy taxpayer with 0times the taxable income of another taxpayer would pay 0times more in taxes. A flat tax would treat people equally. If the flat tax is on consumption, it is regressive because poor people spend virtually their income on consumption, whereas wealthy people spend a substantial portion of their income on investments.

Income Tax Return for Certain Nonresident Aliens with No Dependents.