For earnings of $100,000 and above the flat tax is lower since the current income tax has higher tax brackets which take effect in those categories.
The following chart illustrates the rate at which taxes are presently collected under the current method of taxation and the taxes that would be collected under the Flat Tax method of taxation. As noted in the chart, the amount of taxes collected would essentially remain the same although the differences noted in this work would apply to the three income brackets listed in the following graph.
Figure 1
Flat Tax Method vs. Present Tax Method
SUMMARY AND CONCLUSION
There does appear to be quite a push at present from some sectors for the institution of the Flat Tax method in order to avoid the complexities experienced...
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