This proposal is on the right track, however, there are a few things that need to be addressed in it. The flat tax needs to be 2-tiered. A standard 13% flat tax for everyone that receives a paycheck, but an 8% flat tax for anyone below the level of poverty. No deductions and you DO NOT file an income tax return at years end. This way, you abolish the IRS and their $12.3 billion dollar budget. You do however have to allocate 20% of that to Treasury to collect revenue. Now, a person making $2000 per week stay in a 13% tax bracket. The majority of people will spend that new found money, so as mentioned previously, the economy will flourish. Also, this forces “the rich” to pay 13% instead of circumventing the system and having an after tax rate of 1%-5%.
As far as SS, you lift the cap to $400,000, period. If needed, enact a hike of 1% over 2 years. The employee gets a .25% increase each year as does the employer. Once there is a suitable reserve, repeal the tax.
I am definitely in favor of a flat income tax across the board. I don’t know if 13% is the right number. I would like to see some information from some economists because I remember in the past hearing a smaller number that would give more revenue than what we currently had. Also, I 100% agree with getting rid of the IRS and reducing the budget by that much. Hopefully some people they can actually make this work start reading these ideas because change needs to happen.