[Diamond]

that is what is being paid out of gross household income for the current tax system

Is that gross household income percentage of 23% inclusive of current business taxes?

I would prefer some Constitutional cap of 7 to 10 percent, but I know I'm just dreaming.

Cordially,

[ancient_geezer]

Is that gross household income percentage of 23% inclusive of current business taxes?

Yes, as measured in 1999-2000 when the legislation was drafted and first introduced to Congress. Current revenue neutral rates would be some what lower, if Bush is succesful in making his tax cuts permanent the rate could actually be lowered to the 18-20% range for 2004.

This table derived from Taxfoundation information indicates the range the rate would lay in today.

refer Tax Freedom Day 2004 PDF http://www.taxfoundation.org/sr129.pdf

 

Total Effective Tax Rates by Level of Government Percent Net National Product(NNP)
Year	Federal	State	Total
1997	21.8%	10.3%	32.1%
1998	22.4%	10.4%	32.8%
1999	22.5%	10.4%	32.9%
20000	23.1%	10.4%	33.5%
2001	22.2%	10.5%	32.7%
2002 1	19.7%	10.2%	29.2%
2003 2	18.5%	10.1%	28.6%
2004 3	17.9%	10.0%	27.9%
Notes: Leap day is omitted to make dates comparable over time. Since depreciation is not available to pay taxes, GDP is an overstatement of spendable income for the purpose of measuring tax burdens. Depreciation is netted out of NNP. 0 Last year of Clinton administration when the HR25(Fair Tax Act) rate was estimated 1 Economic Growth and Tax Reform Reconciliation Act of 2001 2 The Job Creation and Worker Assistance Act of 2002 3 Job Growth and Tax Relief Reconciliation Act of 2003 Sources: Office of Management and Budget; Internal Revenue Service; Congressional Research Service; National Bureau of Economic Research; Treasury Department; and Tax Foundation calculations.