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How about this for a universal tax plan? YOUR_TAX = MARGINAL_RATE * MAX( 0, ( YOUR_INCOME - MEDIAN_INCOME )) By 2014 data, if we round median household inco
by logfromblammo 10y ago
How about this for a universal tax plan?
YOUR_TAX = MARGINAL_RATE * MAX( 0, ( YOUR_INCOME - MEDIAN_INCOME ))
By 2014 data, if we round median household income to $55000/year, 63327000 households owe no tax. If the MARGINAL_RATE is set to 40%, then households earning $55k-$60k have about a 1.5% tax rate. $60k-$65k pay about 4.5%. $195k-$200k pays about 28.8%. Households earning over $250k pay between 31.2% and 40%.
That's a progressive, but not onerous tax scheme. From $9436 billion in total household income, it taxes $1742 billion. Actual receipts from the 1040 tax in 2014 totaled about $1395 billion.
There are only 3 variables: the income that you partially control, the median computed by the easiest statistical analysis you can do, and the fraction between 0.0 and 0.99 set by public policy.