u/Aaron_Icicle

Thoughts on this and the future?

New high school opening, cooling off housing market with hundreds of units on the way, less crime and homelessness overall. It seems several of the main issues our city faces are looking up. Still sky high healthcare costs with UVM Health as a private monopoly but regardless.

In the US federal tax system, payroll taxes are so regressive you can remove all other tax types and generate the same revenue with a Unified Federal Individual Income Tax only based on salary income without raising taxes on those earning under 100k.

This is the case for what replacing the 74,000 page federal tax code with 1 simple type could look like. All data based on 2025, comment on if this would be a better system?

Current Federal Revenue
Total Revenue: $5.2 Trillion
Individual Income Tax: $2.6 Trillion (Base)
Payroll Tax: $1.8 Trillion (Merged)
Corporate Income Tax: $404 Billion (Repealed)
Tariffs And Customs: $218 Billion (Repealed)
Gas Tax: $46 Billion (Repealed)
Estate And Gift Taxes: $36 Billion (Repealed)
Alcohol And Tobacco Taxes: $18 Billion (Repealed)
Other Federal Revenue: $88 Billion (Repealed)

Current Real Tax Rates
Combined Income + Employee/Employer Payroll
$25,000: $4,750 Owed (19.0%)
$45,000: $10,157 Owed (22.6%)
$65,000: $15,694 Owed (24.1%)
$96,000: $27,257 Owed (28.4%)
$173,000: $57,056 Owed (33.0%)
$234,000: $75,831 Owed (32.4%)
$500,000: $178,071 Owed (35.6%)
$1,000,000: $379,229 Owed (37.9%)

Unified Marginal Progressive Brackets
$0-$33k: 19%
$33k-$66k: 32%
$66k-$100k: 37%
$100k-$150k: 40%
$150k-$200k: 42%
$200k-$250k: 44%
Above $250k: 50%

New Real Tax Rates
Includes Expanded Base + Hidden Tax Offset
$25,000: $340 Owed (1.4%) | $4,410 Less
$45,000: $5,700 Owed (12.7%) | $4,457 Less
$65,000: $13,400 Owed (20.6%) | $2,294 Less
$96,000: $26,280 Owed (27.4%) | $977 Less
$173,000: $59,040 Owed (34.1%) | $1,984 More
$234,000: $89,000 Owed (38.0%) | $13,169 More
$500,000: $222,000 Owed (44.4%) | $43,929 More
$1,000,000: $472,000 Owed (47.2%) | $92,771 More

Revenue By Bracket
Total Taxable Base: $15.2 Trillion
$0-$33k: $760 Billion
$33k-$66k: $1.024 Trillion
$66k-$100k: $777 Billion
$100k-$150k: $720 Billion
$150k-$200k: $420 Billion
$200k-$250k: $308 Billion
Above $250k: $1.2 Trillion
Total Revenue Generated: $5.209 Trillion
Target Revenue: $5.2 Trillion

Total Expanded Taxable Income
Total Wage Base: $13.1 Trillion
Added Revenue From Expanded Compensation Base: $820 Billion
Net Revenue Gain From Broader Labor Base: $520 Billion
Mandatory Employer Payroll Pass Through: $900 Billion
Total Added Taxable Base: $2.1 Trillion
New Total Taxable Wage Base: $15.2 Trillion
Target Revenue: $5.2 Trillion
Required Average Tax Rate: 34.2%

Hidden Pass Through Savings
Hidden Tax Repeal Base: $1 Trillion
Estimated Hidden Tax Pass Through To Households: $594 Billion
Estimated Hidden Tax Pass Through Rate: 59%
Household Count: 134.8 Million
Average Household Hidden Tax Offset: $4,410

See Full Report Here
https://pdflink.to/ufiitcase