What should the federal tax brackets be?

[A18]

I would prefer a national sales tax, but since we're stuck with an income tax for now, I'd make it it a flat rate of 17%, and just exempt a certain amount of money based on family size.

[ThePrezMex]

I would prefer a zero percent rate until certain threshold and a 15% flat rate after that. No exemptions.
I am a supporter of a flat tax, actually of a system with a low value added tax and a low flat income tax.
That would be a much better system than the current one, with an increase in the total welfare of the economy. But the main problem is how to get there. It is awfully difficult and the road is full of practical obstacles.
For example, the value added tax is one of the best tax systems (the USA is one of only two countries among the OECD that does not have a VAT), but it would create huge states-federal government problems here.

[falling apart like the ashes of American flags]

I'd tell you, but knowing you it'd probably give you nightmares.

[A18]

Nah, I'd like to know. At least then I can tell you what your extremist positions are.

[A18]

For example, the value added tax is one of the best tax systems (the USA is one of only two countries among the OECD that does not have a VAT), but it would create huge states-federal government problems here.

I HATE the VAT. I don't want the government taxing certain items at different rates... too much social/economic engineering.

Plus, it's terribly complex. Why not just have a sales tax?

[Moooooo]

I dont understand the whole National Sales tax.  Wouldnt that make people want to buy less and therefore create less revenue for the Gov't?  What would be the % on a national sales tax?

[David S]

Zero sounds about right.

[A18]

I dont understand the whole National Sales tax.  Wouldnt that make people want to buy less and therefore create less revenue for the Gov't?  What would be the % on a national sales tax?

About 15%.

People will keep all of their income, so people won't want to buy less. More money + higher prices = net neutral

[Moooooo]

Wouldnt a 15% sales tax crush someone only making like 30,000 or less a year?  Their buying power would be virtually nothing or am I missing something?

[Sam Spade]

Wouldnt a 15% sales tax crush someone only making like 30,000 or less a year?  Their buying power would be virtually nothing or am I missing something?

Any type of sales tax or VAT would have to have exemptions up to a certain level, probably full exemptions when I think about it.

Through my economic reading, I tend to lie more towards believing personally that a flat income tax or a VAT with exemptions up to a certain income level would be best for the US.

I also don't see anything like any of this happening anytime soon either. 

Just the facts. 

[Richard]

The federal tax brackets should be progressive as follows:

Under $20,000: 0%
Over $20,000: 0%

[opebo]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

[falling apart like the ashes of American flags]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

I like that

[David S]

The federal tax brackets should be progressive as follows:

Under $20,000: 0%
Over $20,000: 0%

That kind of progressive I like.

[Brandon H]

Under 5% income tax. (Eventually lower to 0%, but the government is so screwed up now, it will take some money to fix it.)  I'd consider making it flat until hitting 1,000,000 but the corporate CEOs know how to take advantage of loop wholes, so putting a tax on that would serve no purpose.

Part of me would want to put like a 50% tax on movies and music because I'm not a big fan of Hollywood. 

[DanielX]

A 'thin' tax.  Not ideal (ideal is none), but it works:

Simple: For each person in a household, up to a certain amount of income is untaxed: say, $15,000 per adult, and $5,000 per child. Above the minimum, a 20% tax is imposed on only revenue above that amount.

Example: a family of 2 adults and 2 children earns $60,000 a year. With 2 adults and 2 children, the first $40,000 is exempt, while the remaining $20,0000 is taxed at 20%, resulting in them paying $4,000 in income tax each year.

[TeePee4Prez]

Clinton's levels with no maximum capital gains rates.  Unearned income should not be higher than earned.  However, I can see avoiding the "double taxation" of dividend income by only taxing retained earnings and dividends taxed at the individual's marginal rate.

[Richard]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

OK.  So If I make any amount between $10,000 and $19,997, it would be better to ask my employer to pay me $9,999 so that I can get a check for $9,999 from the government (-100% tax) to earn $19,998.

Brilliant.  I love it when uneducated people try to combine economics (something they know little of) and math (something they know even less of).

[Frodo]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

sounds perfectly reasonable to me, although in times of war as we are now in, the top five rates should be hiked to account for the extra costs -throughout the history of this republic, this has been SOP. 

[The Duke]

0-15: 0%
15-50: 5%
50-75: 10%
75-100: 15%
100-150: 20%
150-250: 25%
250-500: 30%
1 million +: 40%

Very few deductions

[Moooooo]

0-15: 0%
15-50: 5%
50-75: 10%
75-100: 15%
100-150: 20%
150-250: 25%
250-500: 30%
1 million +: 40%

Very few deductions

That seems reasonable to me.

[opebo]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

OK.  So If I make any amount between $10,000 and $19,997, it would be better to ask my employer to pay me $9,999 so that I can get a check for $9,999 from the government (-100% tax) to earn $19,998.

I think a better way would be to simply give every american a check for $10,000 every year.  That way we wouldn't have to fuss about moonlighting and working for cash, that sort of thing.

[John Dibble]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

OK.  So If I make any amount between $10,000 and $19,997, it would be better to ask my employer to pay me $9,999 so that I can get a check for $9,999 from the government (-100% tax) to earn $19,998.

I think a better way would be to simply give every american a check for $10,000 every year.  That way we wouldn't have to fuss about moonlighting and working for cash, that sort of thing.

I don't want money going to people who don't work for it.

[Jake]

$    0- 20K     0%
$  20- 40K     5%
$  40- 60K   10%
$  60-100K   20%
$ 100-200K  25%
$ 200-500K  30%
$ 500K-1 mil 35%
over              40%


I have no problem with high taxes on those that make over 500K.  Just so middle class people that make 100K don't have tax raises.

[opebo]

Oh, just off the top of my head...
Individual rates:
<10,000 = -100% http://www.econlib.org/library/Enc/NegativeIncomeTax.html
10-20     = 0%
20-30     = 5%
30-40     = 10%
40-50     =  15%
50-60     =  20%
60-70     =  25%
70-80     =  30%
80-90     =  35%
90-100   =  40%
100-150 =  45%
150+      =  50%

sounds perfectly reasonable to me, although in times of war as we are now in, the top five rates should be hiked to account for the extra costs -throughout the history of this republic, this has been SOP. 

I disagree.  I think that when there is any need or national crisis the appropriate thing would be to add several more rates rather then increase taxes at these income levels.  For example:

150-200K   = 50%
200-300K   = 60%
300-1000K = 70%
1 million+   = 80%

In my opinion any level much above 50 or 60% would probably invoke the conservatives much ballyhooed Laffer Curve, and so wouldn't be helpful in normal times, but during war or crisis, it would be a temporary solution.