Time To Get Rid Of The Federal Income Tax

Financial Samurai had a very interesting post on a Fair Income Tax Policy In America. This got me thinking as to what would be the best tax system for the United States. It may finally be time to move from our income based tax syatem to a better alternative.

According to the Congressional Budget Office, households that made between $34,300 and $141,900 paid 50.5 percent of all federal tax revenues in 2007. This group of middle class and upper income Americans contribute more to government tax receipts than the rich and lower income individuals. If you add in the next group of wage earners, individuals that earned between $34,300 and $352,900 paid 66.7 percent of all federal taxes in 2007.

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