Sunday, April 12, 2009

How much money would the government lose or gain if the current income tax was replaced with a flat tax?

Im doing a project for school and I can't the answer to this question anywhere. I need to know how much money would the government lose or gain if the flat tax was replaced with the graduated income tax.

Thanks,

Josh.


None, since the "flat tax" rate would be set to be revenue neutral which means the same amount would be collected.

The working poor, who pay no tax now and often get back money anyway through Earned Income Credit, and the middle class, would lose big time though, and most high earners would get a very nice tax break.

It is supposed to be revenue neutral but some people would pay less and most people, including you, would pay more.

I am not sure but you should try researching th Fair Tax Act...you may find what you are looking for...

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