Overheard at one of the 30,000 Seattle area coffee shops: Angry Barista: We need to simplify the tax system! Angrier Barista: Wouldnt it make more sense to just do a 20% flat tax?! Angriest Barista: YES, FLAT TAX! FLAT TAX! FLAT TAX! We will all be better off! Consider the following scenarios: 1) the current progressive tax system (hint: rates are found in I.R.C. 1); versus 2) a 20-percent flat tax. Analyze the two options above for three income levels: 1) $50,000; 2) $90,000; and 3) $125,000. If we were only worried about the best individual outcome, what should we say: progressive or flat tax? Extra point: what would your income have to be to benefit from a 20% flat tax