February 6, 1996 02:33 PM | Permalink |
Source: Break-even rates and exemptions from U.S. Treasury, “An Analysis of the New Armey-Shelby Flat Tax Proposal,” Dec. 1995. Calculations by Citizens for Tax Justice, Feb. 1996.
NOTE: Taxable fringe benefits under the flat tax include employer-paid health insurance, the employer share of Social Security and Medicare taxes, and miscellaneous other non-pension fringe benefits. As proposed, the Armey exemptions would be $10,700 per taxpayer plus $5,000 per child. To break even at a 17% tax rate, Treasury says that exemptions would have to be reduced to $5,100 per taxpayer and $2,400 per child.