Appendix B: More Two Tier Flat Tax Charts

Placing all the charts I generated in the main text of Free Money as Two-Tier Tax Prebate would have excessively broken up the flow. So here they all are in an appendix for those who want more numbers. See Appendix A for definitions used in the charts which are shared with those of the flat tax charts.

For the columns marked “Two Tier @x%, y% break @zK”, x is the deduction rate starting at the first dollar of income. y is the rate levied on the rich. z is the definition of rich for tax purposes. The last is per individual. So if z is 100, then an individual making $100,000/year is rich for tax purposes and a family making $200,000/year is rich.

We compare the two-tier tax systems with two different models of the current tax code: one which the average person is able to come up with itemized deductions of 15% nominal income and one in which the average person is able to come up with itemized deductions of 20% nominal income. Of course, we assume any who makes a low income will take the standard deduction when this rate time nominal income is less than the standard deduction.

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 two tier tax plan with prebate.

For individuals:

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

Nominal Income Total Tax Two Tier @30%, 35% break @100K Prebate to Match Two Tier @30%, 40% break @100K Prebate to Match Two Tier @30%, 35% break @200K Prebate to Match Two Tier @30%, 40% break 200K Prebate to Match
$14500 $2734 $4683 $1949 $4683 $1949 $4683 $1949 $4683 $1949
$25000 $5754 $8074 $2320 $8074 $2320 $8074 $2320 $8074 $2320
$30000 $7269 $9689 $2420 $9689 $2420 $9689 $2420 $9689 $2420
$40000 $10254 $12918 $2664 $12918 $2664 $12918 $2664 $12918 $2664
$50000 $13544 $16148 $2604 $16148 $2604 $16148 $2604 $16148 $2604
$60000 $17199 $19377 $2178 $19377 $2178 $19377 $2178 $19377 $2178
$75000 $22681 $24221 $1540 $24221 $1540 $24221 $1540 $24221 $1540
$100000 $31819 $32678 $859 $33060 $1241 $32295 $476 $32295 $476
$200000 $59330 $68333 $9002 $73809 $14478 $63333 $4002 $63809 $4478
$300000 $90005 $103840 $13835 $114389 $24383 $98840 $8835 $104389 $14383
$500000 $152860 $174855 $21996 $195549 $42689 $169855 $16996 $185549 $32689
$1000000 $316109 $352393 $36283 $398449 $82339 $347393 $31283 $388449 $72339
$2000000 $642609 $707468 $64858 $804249 $161639 $702468 $59858 $794249 $151639
$5000000 $1622110 $1772693 $150583 $2021649 $399539 $1767693 $145583 $2011649 $389539

For couples with no children:

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

Nominal Income Total Tax Two Tier @30%, 35% break @100K Prebate to Match Two Tier @30%, 40% break @100K Prebate to Match Two Tier @30%, 35% break @200K Prebate to Match Two Tier @30%, 40% break 200K Prebate to Match
$14500 $2219 $4683 $1232 $4683 $1232 $4683 $1232 $4683 $1232
$25000 $4455 $8074 $1809 $8074 $1809 $8074 $1809 $8074 $1809
$30000 $5720 $9689 $1984 $9689 $1984 $9689 $1984 $9689 $1984
$40000 $8478 $12918 $2220 $12918 $2220 $12918 $2220 $12918 $2220
$50000 $11508 $16148 $2320 $16148 $2320 $16148 $2320 $16148 $2320
$60000 $14538 $19377 $2420 $19377 $2420 $19377 $2420 $19377 $2420
$75000 $19083 $24221 $2569 $24221 $2569 $24221 $2569 $24221 $2569
$100000 $27088 $32295 $2604 $32295 $2604 $32295 $2604 $32295 $2604
$200000 $64400 $65355 $478 $66120 $860 $64590 $95 $64590 $95
$300000 $94708 $101158 $3225 $107037 $6164 $95278 $285 $95278 $285
$500000 $157489 $172173 $7342 $188197 $15354 $162173 $2342 $168197 $5354
$1000000 $320739 $349710 $14485 $391097 $35179 $339710 $9485 $371097 $25179
$2000000 $647239 $704785 $28773 $796897 $74829 $694785 $23773 $776897 $64829
$5000000 $1626739 $1770010 $71635 $2014297 $193779 $1760010 $66635 $1994297 $183779

For couples with two children:

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

Nominal Income Total Tax Two Tier @30%, 35% break @100K Prebate to Match Two Tier @30%, 40% break @100K Prebate to Match Two Tier @30%, 35% break @200K Prebate to Match Two Tier @30%, 40% break 200K Prebate to Match
$14500 $2219 $4683 $1232 $4683 $1232 $4683 $1232 $4683 $1232
$25000 $3825 $8074 $2124 $8074 $2124 $8074 $2124 $8074 $2124
$30000 $4990 $9689 $2349 $9689 $2349 $9689 $2349 $9689 $2349
$40000 $7520 $12918 $2699 $12918 $2699 $12918 $2699 $12918 $2699
$50000 $10413 $16148 $2868 $16148 $2868 $16148 $2868 $16148 $2868
$60000 $13443 $19377 $2967 $19377 $2967 $19377 $2967 $19377 $2967
$75000 $17988 $24221 $3117 $24221 $3117 $24221 $3117 $24221 $3117
$100000 $25263 $32295 $3516 $32295 $3516 $32295 $3516 $32295 $3516
$200000 $62356 $65355 $1500 $66120 $1882 $64590 $1117 $64590 $1117
$300000 $92299 $101158 $4429 $107037 $7369 $95278 $1489 $95278 $1489
$500000 $154934 $172173 $8619 $188197 $16631 $162173 $3619 $168197 $6631
$1000000 $318184 $349710 $15763 $391097 $36456 $339710 $10763 $371097 $26456
$2000000 $644684 $704785 $30050 $796897 $76106 $694785 $25050 $776897 $66106
$5000000 $1624184 $1770010 $72913 $2014297 $195056 $1760010 $67913 $1994297 $185056

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 Tax Two Tier @30%, 35% break @100K Prebate to Match Two Tier @30%, 40% break @100K Prebate to Match Two Tier @30%, 35% break @200K Prebate to Match Two Tier @30%, 40% break 200K Prebate to Match
$14500 $2734 $4683 $1949 $4683 $1949 $4683 $1949 $4683 $1949
$25000 $5754 $8074 $2320 $8074 $2320 $8074 $2320 $8074 $2320
$30000 $7224 $9689 $2465 $9689 $2465 $9689 $2465 $9689 $2465
$40000 $9954 $12918 $2964 $12918 $2964 $12918 $2964 $12918 $2964
$50000 $12919 $16148 $3229 $16148 $3229 $16148 $3229 $16148 $3229
$60000 $16449 $19377 $2928 $19377 $2928 $19377 $2928 $19377 $2928
$75000 $21744 $24221 $2478 $24221 $2478 $24221 $2478 $24221 $2478
$100000 $30569 $32678 $2109 $33060 $2491 $32295 $1726 $32295 $1726
$200000 $56530 $68333 $11802 $73809 $17278 $63333 $6802 $63809 $7278
$300000 $85055 $103840 $18785 $114389 $29333 $98840 $13785 $104389 $19333
$500000 $144110 $174855 $30746 $195549 $51439 $169855 $25746 $185549 $41439
$1000000 $298609 $352393 $53783 $398449 $99839 $347393 $48783 $388449 $89839
$2000000 $607609 $707468 $99858 $804249 $196639 $702468 $94858 $794249 $186639
$5000000 $1534610 $1772693 $238083 $2021649 $487039 $1767693 $233083 $2011649 $477039

For couples with no children:

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

Nominal Income Total Tax Two Tier @30%, 35% break @100K Prebate to Match Two Tier @30%, 40% break @100K Prebate to Match Two Tier @30%, 35% break @200K Prebate to Match Two Tier @30%, 40% break 200K Prebate to Match
$14500 $2219 $4683 $1232 $4683 $1232 $4683 $1232 $4683 $1232
$25000 $4455 $8074 $1809 $8074 $1809 $8074 $1809 $8074 $1809
$30000 $5720 $9689 $1984 $9689 $1984 $9689 $1984 $9689 $1984
$40000 $8478 $12918 $2220 $12918 $2220 $12918 $2220 $12918 $2220
$50000 $11508 $16148 $2320 $16148 $2320 $16148 $2320 $16148 $2320
$60000 $14448 $19377 $2465 $19377 $2465 $19377 $2465 $19377 $2465
$75000 $18543 $24221 $2839 $24221 $2839 $24221 $2839 $24221 $2839
$100000 $25838 $32295 $3229 $32295 $3229 $32295 $3229 $32295 $3229
$200000 $61600 $65355 $1878 $66120 $2260 $64590 $1495 $64590 $1495
$300000 $89758 $101158 $5700 $107037 $8639 $95278 $2760 $95278 $2760
$500000 $148739 $172173 $11717 $188197 $19729 $162173 $6717 $168197 $9729
$1000000 $303239 $349710 $23235 $391097 $43929 $339710 $18235 $371097 $33929
$2000000 $612239 $704785 $46273 $796897 $92329 $694785 $41273 $776897 $82329
$5000000 $1539239 $1770010 $115385 $2014297 $237529 $1760010 $110385 $1994297 $227529

For couples with two children:

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

Nominal Income Total Tax Two Tier @30%, 35% break @100K Prebate to Match Two Tier @30%, 40% break @100K Prebate to Match Two Tier @30%, 35% break @200K Prebate to Match Two Tier @30%, 40% break 200K Prebate to Match
$14500 $2219 $4683 $1232 $4683 $1232 $4683 $1232 $4683 $1232
$25000 $3825 $8074 $2124 $8074 $2124 $8074 $2124 $8074 $2124
$30000 $4990 $9689 $2349 $9689 $2349 $9689 $2349 $9689 $2349
$40000 $7520 $12918 $2699 $12918 $2699 $12918 $2699 $12918 $2699
$50000 $10413 $16148 $2868 $16148 $2868 $16148 $2868 $16148 $2868
$60000 $13353 $19377 $3012 $19377 $3012 $19377 $3012 $19377 $3012
$75000 $17448 $24221 $3387 $24221 $3387 $24221 $3387 $24221 $3387
$100000 $24273 $32295 $4011 $32295 $4011 $32295 $4011 $32295 $4011
$200000 $59556 $65355 $2900 $66120 $3282 $64590 $2517 $64590 $2517
$300000 $87349 $101158 $6904 $107037 $9844 $95278 $3964 $95278 $3964
$500000 $146184 $172173 $12994 $188197 $21006 $162173 $7994 $168197 $11006
$1000000 $300684 $349710 $24513 $391097 $45206 $339710 $19513 $371097 $35206
$2000000 $609684 $704785 $47550 $796897 $93606 $694785 $42550 $776897 $83606
$5000000 $1536684 $1770010 $116663 $2014297 $238806 $1760010 $111663 $1994297 $228806