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    Flat Tax Rate

    Uploaded by

    irfan
    This document compares two alternate flat tax rate proposals to the current tax system across 10 taxpayer examples. Alternate 1 proposes a flat tax rate that ranges from 5% to 22% depending on income level, while Alternate 2 ranges from 6% to 26%. For each taxpayer, it shows income, state of residence, taxes withheld, estimated taxes owed, taxes owed under each flat tax proposal, and any unpaid tax or penalty. In total, the actual taxes collected were $256,651 while the flat tax proposals would collect $220,493 under Alternate 1 and $257,439 under Alternate 2.

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    Flat Tax Rate

    Uploaded by

    irfan
    6 views2 pages
    This document compares two alternate flat tax rate proposals to the current tax system across 10 taxpayer examples. Alternate 1 proposes a flat tax rate that ranges from 5% to 22% depending on income level, while Alternate 2 ranges from 6% to 26%. For each taxpayer, it shows income, state of residence, taxes withheld, estimated taxes owed, taxes owed under each flat tax proposal, and any unpaid tax or penalty. In total, the actual taxes collected were $256,651 while the flat tax proposals would collect $220,493 under Alternate 1 and $257,439 under Alternate 2.

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    This document compares two alternate flat tax rate proposals to the current tax system across 10 taxpayer examples. Alternate 1 proposes a flat tax rate that ranges from 5% to 22% depending on income level, while Alternate 2 ranges from 6% to 26%. For each taxpayer, it shows income, state of residence, taxes withheld, estimated taxes owed, taxes owed under each flat tax proposal, and any unpaid tax or penalty. In total, the actual taxes collected were $256,651 while the flat tax proposals would collect $220,493 under Alternate 1 and $257,439 under Alternate 2.

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    © All Rights Reserved
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    6 views2 pages

    Flat Tax Rate

    Uploaded by

    irfan
    This document compares two alternate flat tax rate proposals to the current tax system across 10 taxpayer examples. Alternate 1 proposes a flat tax rate that ranges from 5% to 22% depending on income level, while Alternate 2 ranges from 6% to 26%. For each taxpayer, it shows income, state of residence, taxes withheld, estimated taxes owed, taxes owed under each flat tax proposal, and any unpaid tax or penalty. In total, the actual taxes collected were $256,651 while the flat tax proposals would collect $220,493 under Alternate 1 and $257,439 under Alternate 2.

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    of 2

    Flat Tax Rate

    Base Income
    $ 0 $ 30,000 $ 50,000 $ 80,000 $ 180,000
    Alternate 1 0.0% 5.0% 9.0% 14.0% 22.0%
    Alternate 2 0.0% 6.0% 10.0% 16.0% 26.0%

    State Allowance
    MA $ 2,200
    NH $ 800
    VT $ 650

    Actual
    Taxable State of Withhold- Estimated Actual Tax Flat Tax
    ID # Income Residence ing Paid Taxes Paid Owed Alternate 1
    1 $ 103,300 MA $ 10,235 $ 0 $ 14,954 14462
    2 $ 53,003 MA 6,423 0 6,400 4770.27
    3 $ 87,925 NH 6,384 0 16,589 12309.5
    4 $ 525,000 VT 0 93,225 130,415 115500
    5 $ 65,488 VT 9,402 0 6,412 5893.92
    6 $ 193,000 VT 12,345 0 48,750 42460
    7 $ 29,200 MA 2,310 0 259 0
    8 $ 52,700 MA 0 7,200 4,955 4743
    9 $ 96,400 NH 18,000 0 19,192 13496
    10 $ 76,200 OH 6,703 4,000 8,725 6858

    Total Revenues: $ 256,651 $ 220,493


    Penalty

    Amount Owed Penalty %


    $ 0 0
    100 3%
    1,000 5%
    5,000 7%
    10,000 10%
    50,000 15%

    Actual Actual Penalty


    Flat Tax Unpaid Unpaid Tax Unpaid Tax Penalty Penalty Alternate State
    Alternate 2 Tax Alternate 1 Alternate 2 Owed Alternate 1 2 Allowance
    16528 $ 4,719 $ 4,227 $ 6,293 235.95 211.35 440.51 2200
    5300.3 $ (23) $ (1,653) $ (1,123) 0 0 0 2200
    14068 $ 10,205 $ 5,926 $ 7,684 1020.5 414.785 537.88 800
    136500 $ 37,190 $ 208,725 $ 229,725 3719 31308.75 34458.75 650
    6548.8 $ (2,990) $ (3,508) $ (2,853) 0 0 0 650
    50180 $ 36,405 $ 30,115 $ 37,835 3640.5 3011.5 3783.5 650
    0 $ (2,051) $ (2,310) $ (2,310) 0 0 0 2200
    5270 $ (2,245) $ 11,943 $ 12,470 0 1194.3 1247 2200
    15424 $ 1,192 $ (4,504) $ (2,576) 59.6 0 0 800
    7620 $ (1,978) $ 4,155 $ 4,917 0 207.75 245.85 #N/A

    $ 257,439 $ 80,424 $ 253,116 $ 290,062 $ 8,676 $ 36,348 $ 40,713

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