Governor Rick Perry joined the Republican crowd which is urging adoption of some form of flat tax. Of course, it was a great Republican President, Theodore Roosevelt who fought for the graduated income tax, an idea first proposed by American farmers who had formed the Populist Party. Alas, today, Republicans vie to prove who is more pro-business. Rick informed the world of his support of a 20% flat tax for those with millions as well as those with thousands. So, what does the flat tax look like?
I make a million dollars this year. In theory I pay 36% for income tax–$360,000. Under the Perry flat 20% tax, my tax levy is now $200,000. A neat reduction of $160,000.
I make thirty thousand. Under present rules I might pay about $2,000 in federal taxes. Under the Perry plan I now pay $6,000.
Isn’t it wonderful to be a millionaire in America, circa, 2011. Republicans want to make certain I pay less taxes and the middle and poor classes pay more.