Federal Income Tax System Quiz
I just took the Federal Income Tax System Quiz at the FairTax Revolution website . I was shocked at how complicated our current tax system is, and think you will be too! Once you’re done, I’m sure that you will agree we need to abolish the IRS and pass the FairTax.
Click on this URL to take the tax quiz
http://www.fairtaxrevolution.com/federal_tax_quiz.asp
Sincerely,
Bill Rook
6 Responses to “Federal Income Tax System Quiz”
Great quiz. I’ve got a question though, on number “4) Taxes eat up how much of the average family’s income?” The answer says 40%, can anyone explain that? Is it really that high? I would’ve thought it was 30%.
Average people at 15% tax bracket, plus 7.65% and 7.65%. Have I got something wrong, or did I miss something?
4) Taxes eat up how much of the average family’s income?
The question does not say federal taxes.
17% Average Federal Income Tax
7.65% Payroll (employee only)
8.7% State & Local Income
—–
33.35
Plus property tax
Plus fuel taxes
Plus federal excise taxes
I don’t think it would be appropriate to include 100% of embedded taxes, but the portion that is purely embedded corporate tax would be appropriate.
I couldn’t quickly find good sources for all the taxes, but I see that it is easily > 30%. Adding in embedded employer payroll contribution takes the total to 41%
We don’t even know how much we pay in taxes. This is bad.
This is why I wouldn’t necessarily be opposed to a Flat Tax, provided that it had two necessary conditions:
1. All taxes (corporate income, payroll, etc) are included in the new “Flat Tax”.
2. We ended withholding.
But if people actually had to pay a check every month, every quarter, or every year to cover the cost of the government they’ve been voting for the last 100 years, I think we’d see a serious change.
At the same time, I think the FairTax is better than my above proposed system, but I’d accept the above.
I honestly cannot remember exactly where my wife and I found this information when we were coming up with the quiz! However, here are some links that support the roughly 40%.
I hope this helps!
Joseph
www.fairtaxrevolution.com
Thanks for the links Joseph!
In my curiosity I ended up looking for the marriage rates.
http://www.savewealth.com/taxes/rates/
I figured, the average family is probably a married couple filing jointly. From that site it can be determined that if a couple is earning between $59,400 and $119,950 they get taxed at a 25% rate.
25%+7.65%+7.65%=40.3%
(now add local taxes, exemption filled sales taxes, and embedded taxes and see if you think the system’s fine!)
With per capita GDPs in the US at $41,800, it’s not too hard to imagine a couple pulling in more than $59,400 per annum. I’m going to start e-mailing this quiz around now.
It might be good if you guys created an explanation page for every question with references, numbers, links, and quotes, so people could continue learning even after they get their scores.
That’s a good idea!
Thanks,
Joseph
www.fairtaxrevolution.com