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:

• Nominal income: this is the stated salary, and your gross income for tax purposes.
• Total income: this is nominal income plus the employer paid portion of FICA (Social Security) and Medicare taxes.
• Payroll tax: sum of employer and employee portions of Medicare and FICA.
• Income tax: an estimate of federal income tax paid by individual or family.
• Total tax: income plus payroll tax under the current system.
• Average rate: total tax / total income * 100%. This is the percent the government takes of what an employer is actually paying to hire an employee.
• Marginal rate: the percent that the government takes of an additional dollar of total income at the nominal income in question.
• Flat Tax @x%: suppose we replaced income and payroll taxes with a flat tax of x% of total income with no deductions. This is the amount that the government would collect if there was not rebate.
• Prebate: this is a term borrowed from the Fair Tax people. A prebate is the same as a tax rebate save that it can exceed the amount of taxes paid. This provides a smooth transition from taxpayer to free money recipient, so smooth that it pays to work at all income levels.
• Prebate to Match @x%: Now suppose we gave every adult citizen a fixed amount of free money every year. The amount in this column is the amount of annual free money per adult citizen to match the current tax system at this income level. If we set the free money amount higher than this figure, then those with an income at this row get a tax cut. If the free money is higher than the Flat Tax @x% column, then people at this income are receiving a net subsidy from the government. Multiply the tax raise/cut/subsidy by two to see what families receive from a flat tax/prebate combination.

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