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 $300,000. We learn that Joe actually made $600,000, but his taxable income was only $300,000 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 $600,000. 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 If Taxable Income The Tax is Is over But not over This amount Plus this % Of the excess over Schedule XUse if your filing status is Single $0 $9275 - 10 % $0 9276 37,650 $927.50 15 % 9275 37,651 91,150 5183.75 25 % 37,650 91,151 190,150 18,558.75 28 % 91,150 190,151 413,350 46,278.75 33 % 190,150 413,351 415,050 119,934.75 35 % 413,350 415,051 120,529.75 39.6 % 415,050

This is the question again: 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 $300,000.

We learn that Joe actually made $600,000, but his taxable income was only $300,000 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 $600,000.

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.)

Of the excess over 2016 Tax Table for Singles If Taxable Income The Tax is Is over But not over This amount Plus this % Schedule X-Use 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 % $0 9275 37,650 91,150 190,150 413,350 415,050 Of the excess over 2016 Tax Table for Singles If Taxable Income The Tax is Is over But not over This amount Plus this % Schedule X-Use 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 % $0 9275 37,650 91,150 190,150 413,350 415,050