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% |
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| 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% |
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| 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% |
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| 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% |
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| 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% |
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| 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% |
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| 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 |
