Steve Forbes ran for U.S. president in 1996 and 2000 on a platform proposing a 17% flat tax, that is, an income tax that would simply be 17% of each tax payer's taxable income. Suppose that Joe was single in the year 2016 with a taxable income of $350,000. We learn that Joe actually made $700,000, but his taxable income was only $350,000 because of various deductions allowed by the system in 2016. Proponents of the flat tax say that many of these deductions should be eliminated, so the 17% flat tax should be applied to Joe's entire $700,000. How much more tax would Joe pay with a 17% flat tax than under the 2016 system? (Refer to the 2016 Tax Table for Singles for tax rates.) $

2016 Tax Table for Singles Of the excess over $0 If Taxable Income The Tax is Is over But not over This amount Plus this % Schedule XUse if your filing status is Single $0 $9275 10 % 9276 37,650 $927.50 15 % 37,651 91,150 5183.75 25 % 91,151 190,150 18,558.75 28 % 190,151 413,350 46,278.75 33% 413,351 415,050 119,934.75 35 % 415,051 120,529.75 39.6 % 9275 37,650 91,150 190,150 413,350 415,050