Armey/Forbes/Gramm Flat Tax Proposals
For more information visit the
Flat Tax Home Page.
The Armey proposal is a single flat rate for everyone, and the
elimination of all deductions, (like home mortgage interest for
example!) The rate would be 17% and the standard deductions would
be raised accordingly. (Single $11,300; Head of Household $14,850;
Married Filing Jointly $22,700; Children Allowance $5,300 each).
The deductions were reduced to keep the plan revenue neutral.
There would be no direct personal income tax on interest, dividends or
capital gains.
(Look here for
more on how these will be taxed indirectly).
A big proponent is Steve Forbes
though his proposal is slightly different.
This calculator now calculates HIS proposed
tax as well. From Newsweek I am taking his numbers to be a
$26,200 exemption for marrieds, with a $5,300 per child exemption
(that would be $13,100 for singles I am assuming).
Phil Gramm wants to use a 16% rate with lower exemptions ($22,000
Married, $11,000 Single, $5,000 per dependent), but
maintaining deductions for mortgage interest and charitable
contributions. Then he wants to index the capital gains to
inflation before taxing them.
Well, since I can't figure out everyone's indexed capital gains, I have
left that part out of the calculation (i.e. no indexing). So I leave
capital gains and non-wage income as just additional income to tax.
This form will compare the changes
for my own income/deduction combination and thought I would write it
up as a HTML form. For more information on current taxes, see the
U.S. Department of the Treasury This form uses the 1995 tax
schedule. For details on the 1995 tax rates,
look here
Opinions? Vote at the VOTELINK
site and express what you think about the flat tax idea.
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