Appendix A: More Flat Tax Charts

Placing all the charts I generated in the main text of Free Money as Flat Tax Prebate would have excessively broken up the flow. So here they all are in an appendix for those who want more numbers. We look at single wage earners, couples and families of four in the charts below. We apply two models to the existing tax system: an assumed 15% rate of itemized deductions and a 20%. Any taxpayer whose itemized deductions come out as less than the standard deduction uses the standard deduction.

No child credits or retirement plans are applied here. Retirement plans are income deferred vs. true deductions. We also ignore employer provided health insurance and HSAs. Some definitions:

Assuming a 15% Deduction Rate

Assuming that people are on average able to itemize 15% of their income (or take the standard deduction if that is higher), here are their tax rates and the comparison charts with a flat tax plan with prebate.

For individuals:

Num adults1, Num children: 0, Estimated current deduction rate 15%

Nominal Income Total Income Payroll Tax Income Tax Total Tax Average Rate % Marginal Rate %
$14500 $15609 $2219 $515 $2734 17.5 23.5
$25000 $26913 $3825 $1929 $5754 21.4 28.1
$30000 $32295 $4590 $2679 $7269 22.5 28.1
$40000 $43060 $6120 $4134 $10254 23.8 26.1
$50000 $53825 $7650 $5894 $13544 25.2 34.0
$60000 $64590 $9180 $8019 $17199 26.6 34.0
$75000 $80738 $11475 $11206 $22681 28.1 34.0
$100000 $107650 $15300 $16519 $31819 29.6 34.0
$200000 $209522 $19043 $40287 $59330 28.3 26.3
$300000 $310972 $21943 $68062 $90005 28.9 30.5
$500000 $513872 $27743 $125116 $152860 29.7 32.2
$1000000 $1021122 $42243 $273866 $316109 31.0 32.2
$2000000 $2035622 $71243 $571366 $642609 31.6 32.2
$5000000 $5079122 $158243 $1463866 $1622110 31.9 32.2

Num adults1, Num children: 0, Estimated current deduction rate 15%

Nominal Income Total Tax Flat Tax @25% Prebate to Match @25% Flat Tax @30% Prebate to Match @30% Flat Tax @35% Prebate to Match @35% Flat Tax @40% Prebate to Match @40%
$14500 $2734 $3902 $1169 $4683 $1949 $5463 $2730 $6244 $3510
$25000 $5754 $6728 $974 $8074 $2320 $9419 $3666 $10765 $5011
$30000 $7269 $8074 $805 $9689 $2420 $11303 $4035 $12918 $5649
$40000 $10254 $10765 $511 $12918 $2664 $15071 $4817 $17224 $6970
$50000 $13544 $13456 $-88 $16148 $2604 $18839 $5295 $21530 $7986
$60000 $17199 $16148 $-1051 $19377 $2178 $22607 $5408 $25836 $8637
$75000 $22681 $20184 $-2497 $24221 $1540 $28258 $5577 $32295 $9614
$100000 $31819 $26913 $-4906 $32295 $476 $37678 $5859 $43060 $11241
$200000 $59330 $52380 $-6950 $62856 $3526 $73333 $14002 $83809 $24478
$300000 $90005 $77743 $-12263 $93291 $3286 $108840 $18835 $124389 $34383
$500000 $152860 $128468 $-24392 $154162 $1302 $179855 $26996 $205549 $52689
$1000000 $316109 $255280 $-60829 $306337 $-9773 $357393 $41283 $408449 $92339
$2000000 $642609 $508905 $-133704 $610687 $-31923 $712468 $69858 $814249 $171639
$5000000 $1622110 $1269780 $-352329 $1523737 $-98373 $1777693 $155583 $2031649 $409539

For couples with no children:

Num adults2, Num children: 0, Estimated current deduction rate 15%

Nominal Income Total Income Payroll Tax Income Tax Total Tax Average Rate % Marginal Rate %
$14500 $15609 $2219 $0 $2219 14.2 14.2
$25000 $26913 $3825 $630 $4455 16.6 23.5
$30000 $32295 $4590 $1130 $5720 17.7 23.5
$40000 $43060 $6120 $2358 $8478 19.7 28.1
$50000 $53825 $7650 $3858 $11508 21.4 28.1
$60000 $64590 $9180 $5358 $14538 22.5 28.1
$75000 $80738 $11475 $7608 $19083 23.6 28.1
$100000 $107650 $15300 $11788 $27088 25.2 34.0
$200000 $215300 $30600 $33800 $64400 29.9 36.3
$300000 $317593 $35186 $59522 $94708 29.8 30.5
$500000 $520493 $40986 $116503 $157489 30.3 32.2
$1000000 $1027743 $55486 $265253 $320739 31.2 32.2
$2000000 $2042243 $84486 $562753 $647239 31.7 32.2
$5000000 $5085743 $171486 $1455253 $1626739 32.0 32.2

Num adults2, Num children: 0, Estimated current deduction rate 15%

Nominal Income Total Tax Flat Tax @25% Prebate to Match @25% Flat Tax @30% Prebate to Match @30% Flat Tax @35% Prebate to Match @35% Flat Tax @40% Prebate to Match @40%
$14500 $2219 $3902 $842 $4683 $1232 $5463 $1622 $6244 $2013
$25000 $4455 $6728 $1137 $8074 $1809 $9419 $2482 $10765 $3155
$30000 $5720 $8074 $1177 $9689 $1984 $11303 $2792 $12918 $3599
$40000 $8478 $10765 $1144 $12918 $2220 $15071 $3297 $17224 $4373
$50000 $11508 $13456 $974 $16148 $2320 $18839 $3666 $21530 $5011
$60000 $14538 $16148 $805 $19377 $2420 $22607 $4035 $25836 $5649
$75000 $19083 $20184 $551 $24221 $2569 $28258 $4588 $32295 $6606
$100000 $27088 $26913 $-88 $32295 $2604 $37678 $5295 $43060 $7986
$200000 $64400 $53825 $-5287 $64590 $95 $75355 $5478 $86120 $10860
$300000 $94708 $79398 $-7655 $95278 $285 $111158 $8225 $127037 $16164
$500000 $157489 $130123 $-13683 $156148 $-671 $182173 $12342 $208197 $25354
$1000000 $320739 $256936 $-31902 $308323 $-6208 $359710 $19485 $411097 $45179
$2000000 $647239 $510561 $-68339 $612673 $-17283 $714785 $33773 $816897 $84829
$5000000 $1626739 $1271436 $-177652 $1525723 $-50508 $1780010 $76635 $2034297 $203779

For couples with two children:

Num adults2, Num children: 2, Estimated current deduction rate 15%

Nominal Income Total Income Payroll Tax Income Tax Total Tax Average Rate % Marginal Rate %
$14500 $15609 $2219 $0 $2219 14.2 14.2
$25000 $26913 $3825 $0 $3825 14.2 14.2
$30000 $32295 $4590 $400 $4990 15.5 23.5
$40000 $43060 $6120 $1400 $7520 17.5 23.5
$50000 $53825 $7650 $2763 $10413 19.3 28.1
$60000 $64590 $9180 $4263 $13443 20.8 28.1
$75000 $80738 $11475 $6513 $17988 22.3 28.1
$100000 $107650 $15300 $9963 $25263 23.5 34.0
$200000 $215300 $30600 $31756 $62356 29.0 36.3
$300000 $317593 $35186 $57113 $92299 29.1 30.5
$500000 $520493 $40986 $113948 $154934 29.8 32.2
$1000000 $1027743 $55486 $262698 $318184 31.0 32.2
$2000000 $2042243 $84486 $560198 $644684 31.6 32.2
$5000000 $5085743 $171486 $1452698 $1624184 31.9 32.2

Num adults2, Num children: 2, Estimated current deduction rate 15%

Nominal Income Total Tax Flat Tax @25% Prebate to Match @25% Flat Tax @30% Prebate to Match @30% Flat Tax @35% Prebate to Match @35% Flat Tax @40% Prebate to Match @40%
$14500 $2219 $3902 $842 $4683 $1232 $5463 $1622 $6244 $2013
$25000 $3825 $6728 $1452 $8074 $2124 $9419 $2797 $10765 $3470
$30000 $4990 $8074 $1542 $9689 $2349 $11303 $3157 $12918 $3964
$40000 $7520 $10765 $1623 $12918 $2699 $15071 $3776 $17224 $4852
$50000 $10413 $13456 $1522 $16148 $2868 $18839 $4213 $21530 $5559
$60000 $13443 $16148 $1353 $19377 $2967 $22607 $4582 $25836 $6197
$75000 $17988 $20184 $1098 $24221 $3117 $28258 $5135 $32295 $7154
$100000 $25263 $26913 $825 $32295 $3516 $37678 $6208 $43060 $8899
$200000 $62356 $53825 $-4265 $64590 $1117 $75355 $6500 $86120 $11882
$300000 $92299 $79398 $-6451 $95278 $1489 $111158 $9429 $127037 $17369
$500000 $154934 $130123 $-12406 $156148 $607 $182173 $13619 $208197 $26631
$1000000 $318184 $256936 $-30624 $308323 $-4931 $359710 $20763 $411097 $46456
$2000000 $644684 $510561 $-67062 $612673 $-16006 $714785 $35050 $816897 $86106
$5000000 $1624184 $1271436 $-176374 $1525723 $-49231 $1780010 $77913 $2034297 $205056

Assuming a 20% Deduction Rate

Run the same studies as above but we now assume that under the current system people are actually able to deduct 20% of their nominal income on average.

For individuals:

Num adults1, Num children: 0, Estimated current deduction rate 20%

Nominal Income Total Income Payroll Tax Income Tax Total Tax Average Rate % Marginal Rate %
$14500 $15609 $2219 $515 $2734 17.5 23.5
$25000 $26913 $3825 $1929 $5754 21.4 28.1
$30000 $32295 $4590 $2634 $7224 22.4 28.1
$40000 $43060 $6120 $3834 $9954 23.1 25.4
$50000 $53825 $7650 $5269 $12919 24.0 32.8
$60000 $64590 $9180 $7269 $16449 25.5 32.8
$75000 $80738 $11475 $10269 $21744 26.9 32.8
$100000 $107650 $15300 $15269 $30569 28.4 32.8
$200000 $209522 $19043 $37487 $56530 27.0 24.9
$300000 $310972 $21943 $63112 $85055 27.4 28.9
$500000 $513872 $27743 $116366 $144110 28.0 30.5
$1000000 $1021122 $42243 $256366 $298609 29.2 30.5
$2000000 $2035622 $71243 $536366 $607609 29.8 30.5
$5000000 $5079122 $158243 $1376366 $1534610 30.2 30.5

Num adults1, Num children: 0, Estimated current deduction rate 20%

Nominal Income Total Tax Flat Tax @25% Prebate to Match @25% Flat Tax @30% Prebate to Match @30% Flat Tax @35% Prebate to Match @35% Flat Tax @40% Prebate to Match @40%
$14500 $2734 $3902 $1169 $4683 $1949 $5463 $2730 $6244 $3510
$25000 $5754 $6728 $974 $8074 $2320 $9419 $3666 $10765 $5011
$30000 $7224 $8074 $850 $9689 $2465 $11303 $4080 $12918 $5694
$40000 $9954 $10765 $811 $12918 $2964 $15071 $5117 $17224 $7270
$50000 $12919 $13456 $538 $16148 $3229 $18839 $5920 $21530 $8611
$60000 $16449 $16148 $-301 $19377 $2928 $22607 $6158 $25836 $9387
$75000 $21744 $20184 $-1559 $24221 $2478 $28258 $6514 $32295 $10551
$100000 $30569 $26913 $-3656 $32295 $1726 $37678 $7109 $43060 $12491
$200000 $56530 $52380 $-4150 $62856 $6326 $73333 $16802 $83809 $27278
$300000 $85055 $77743 $-7313 $93291 $8236 $108840 $23785 $124389 $39333
$500000 $144110 $128468 $-15642 $154162 $10052 $179855 $35746 $205549 $61439
$1000000 $298609 $255280 $-43329 $306337 $7727 $357393 $58783 $408449 $109839
$2000000 $607609 $508905 $-98704 $610687 $3077 $712468 $104858 $814249 $206639
$5000000 $1534610 $1269780 $-264829 $1523737 $-10873 $1777693 $243083 $2031649 $497039

For couples with no children:

Num adults2, Num children: 0, Estimated current deduction rate 20%

Nominal Income Total Income Payroll Tax Income Tax Total Tax Average Rate % Marginal Rate %
$14500 $15609 $2219 $0 $2219 14.2 14.2
$25000 $26913 $3825 $630 $4455 16.6 23.5
$30000 $32295 $4590 $1130 $5720 17.7 23.5
$40000 $43060 $6120 $2358 $8478 19.7 28.1
$50000 $53825 $7650 $3858 $11508 21.4 28.1
$60000 $64590 $9180 $5268 $14448 22.4 28.1
$75000 $80738 $11475 $7068 $18543 23.0 28.1
$100000 $107650 $15300 $10538 $25838 24.0 32.8
$200000 $215300 $30600 $31000 $61600 28.6 35.0
$300000 $317593 $35186 $54572 $89758 28.3 28.9
$500000 $520493 $40986 $107753 $148739 28.6 30.5
$1000000 $1027743 $55486 $247753 $303239 29.5 30.5
$2000000 $2042243 $84486 $527753 $612239 30.0 30.5
$5000000 $5085743 $171486 $1367753 $1539239 30.3 30.5

Num adults2, Num children: 0, Estimated current deduction rate 20%

Nominal Income Total Tax Flat Tax @25% Prebate to Match @25% Flat Tax @30% Prebate to Match @30% Flat Tax @35% Prebate to Match @35% Flat Tax @40% Prebate to Match @40%
$14500 $2219 $3902 $842 $4683 $1232 $5463 $1622 $6244 $2013
$25000 $4455 $6728 $1137 $8074 $1809 $9419 $2482 $10765 $3155
$30000 $5720 $8074 $1177 $9689 $1984 $11303 $2792 $12918 $3599
$40000 $8478 $10765 $1144 $12918 $2220 $15071 $3297 $17224 $4373
$50000 $11508 $13456 $974 $16148 $2320 $18839 $3666 $21530 $5011
$60000 $14448 $16148 $850 $19377 $2465 $22607 $4080 $25836 $5694
$75000 $18543 $20184 $821 $24221 $2839 $28258 $4858 $32295 $6876
$100000 $25838 $26913 $538 $32295 $3229 $37678 $5920 $43060 $8611
$200000 $61600 $53825 $-3887 $64590 $1495 $75355 $6878 $86120 $12260
$300000 $89758 $79398 $-5180 $95278 $2760 $111158 $10700 $127037 $18639
$500000 $148739 $130123 $-9308 $156148 $3704 $182173 $16717 $208197 $29729
$1000000 $303239 $256936 $-23152 $308323 $2542 $359710 $28235 $411097 $53929
$2000000 $612239 $510561 $-50839 $612673 $217 $714785 $51273 $816897 $102329
$5000000 $1539239 $1271436 $-133902 $1525723 $-6758 $1780010 $120385 $2034297 $247529

For couples with two children:

Num adults2, Num children: 2, Estimated current deduction rate 20%

Nominal Income Total Income Payroll Tax Income Tax Total Tax Average Rate % Marginal Rate %
$14500 $15609 $2219 $0 $2219 14.2 14.2
$25000 $26913 $3825 $0 $3825 14.2 14.2
$30000 $32295 $4590 $400 $4990 15.5 23.5
$40000 $43060 $6120 $1400 $7520 17.5 23.5
$50000 $53825 $7650 $2763 $10413 19.3 28.1
$60000 $64590 $9180 $4173 $13353 20.7 28.1
$75000 $80738 $11475 $5973 $17448 21.6 28.1
$100000 $107650 $15300 $8973 $24273 22.5 25.4
$200000 $215300 $30600 $28956 $59556 27.7 35.0
$300000 $317593 $35186 $52163 $87349 27.5 28.9
$500000 $520493 $40986 $105198 $146184 28.1 30.5
$1000000 $1027743 $55486 $245198 $300684 29.3 30.5
$2000000 $2042243 $84486 $525198 $609684 29.9 30.5
$5000000 $5085743 $171486 $1365198 $1536684 30.2 30.5

Num adults2, Num children: 2, Estimated current deduction rate 20%

Nominal Income Total Tax Flat Tax @25% Prebate to Match @25% Flat Tax @30% Prebate to Match @30% Flat Tax @35% Prebate to Match @35% Flat Tax @40% Prebate to Match @40%
$14500 $2219 $3902 $842 $4683 $1232 $5463 $1622 $6244 $2013
$25000 $3825 $6728 $1452 $8074 $2124 $9419 $2797 $10765 $3470
$30000 $4990 $8074 $1542 $9689 $2349 $11303 $3157 $12918 $3964
$40000 $7520 $10765 $1623 $12918 $2699 $15071 $3776 $17224 $4852
$50000 $10413 $13456 $1522 $16148 $2868 $18839 $4213 $21530 $5559
$60000 $13353 $16148 $1398 $19377 $3012 $22607 $4627 $25836 $6242
$75000 $17448 $20184 $1368 $24221 $3387 $28258 $5405 $32295 $7424
$100000 $24273 $26913 $1320 $32295 $4011 $37678 $6703 $43060 $9394
$200000 $59556 $53825 $-2865 $64590 $2517 $75355 $7900 $86120 $13282
$300000 $87349 $79398 $-3976 $95278 $3964 $111158 $11904 $127037 $19844
$500000 $146184 $130123 $-8031 $156148 $4982 $182173 $17994 $208197 $31006
$1000000 $300684 $256936 $-21874 $308323 $3819 $359710 $29513 $411097 $55206
$2000000 $609684 $510561 $-49562 $612673 $1494 $714785 $52550 $816897 $103607
$5000000 $1536684 $1271436 $-132624 $1525723 $-5481 $1780010 $121663 $2034297 $248806