Reform of the company revenue tax is shaping as much as be one of many large issues facing Congress in 2017. That uncertainty alone is purpose sufficient not to switch to a flat tax – but this isn’t to say that there shouldn’t be adjustments made.
Take the scenario you describe and make only one change: earnings above $500,000 is taxed at 15%.
The flat tax appears to be working in Jap Europe, but you might be right: are things getting better due to the flat tax or the political change.
Under, we’ll take a closer have a look at a very powerful IRS tax rules to help you perceive how your taxes are calculated.