OK, based on this data that I got from ABC News:
“The new flat tax preserves mortgage interest, charitable and state and local tax exemptions for families earning less than $500,000 annually, and it increases the standard deduction to $12,500 for individuals and dependents,”
Let’s calculate the taxes for a family of 4 (2 children), the average household income of which is $50,000, with a monthly mortgage interest of $15000/yr and living in say, Ohio ( where average state and local taxes are about 10%). Assuming the family is generous and gives $500 to the church or charity a year. Maybe the family invests in a dividend bearing stock which gives $600 a year
YOUR INCOME : $50,000
SUBTRACT: Exemptions: 2 X $12,500 : $25,000
SUBTRACT: Mortgage Interest : $15000
SUBTRACT: Charitable Contributions : $500
SUBTRACT: State & Local Taxes : $5,000
SUBTRACT: Capital Gains and Dividends : $600
YOUR TAXABLE INCOME: $3900 X 20%
TAXES OWED : $780.00
I could be wrong but I think you include yourself and your spouse as an exemption?
That would be 4 x 12,500 = 50,000.?
That example is wrong. Exemptions = Yourself + Spouse + Dependents X $12,500