Forbes Flat Tax Distributional Tables
NOTE: Forbes says his flat tax plan is the same as the Armey plan except
that it has bigger wage tax exemptions and no temporary 20% tax rate. Forbes figures above assume
repeal of the earned-income tax credit, based on statements by the Forbes campaign to Fortune (Feb. 6, 1996).
If Forbes does not repeal the EITC, as he told Time (Jan. 29, 1996), the revenue loss from his plan at a 17% rate
grows to $210 billion annually. Source: Most data are from the U.S. Treasury, Dec. 20, 1995. Some additional
calculations by Citizens for Tax Justice, January 18, 1996. Figures substantially understate revenue losses and
understate required tax rate or exemption reductions necessary to avoid revenue losses because they assume
no transition rules.
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