Paul’s tax plan doesn’t align perfectly with a “pure” flat tax, though. The traditional definition states that all individuals pay the same rate without any special deductions or credits, whereas his proposal would include a $15,000 standard deduction per filer and a $5,000 per person personal deduction. For a family of four – two filers, two dependents – that would mean no income tax on their first $50,000.
Those deductions would have a significant impact on poor and working class families when compared to a general flat tax. Under U.S. tax code, around 40 percent of low-income households pay nothing in federal income tax after deductions and credits. Those households tend to pay disproportionate amounts of their income on sales, gas and payroll taxes.
The right-leaning Tax Foundation, which published and analysis of Paul’s tax plan, said the proposal would raise after-tax incomes for all income groups, but the highest earners would benefit the most. Those making between $500,000 and $1 million would see their incomes go up by 23 percent, whereas those making between $30,000 and $40,000 would see an increase of 14 percent.
The current U.S. tax code is divided into seven tax brackets for individuals. The lowest rate, for individuals who make less than $10,000 dollars, is 10 percent, while the rate for the highest earners, or those who make more than $413,000, is 39.6 percent. The amount an individual pays in taxes often depends on other factors such as exemptions and deductions.
GOP candidates such as Sen. Ted Cruz (Texas) and retired neurosurgeon Ben Carson have voiced support for some form of flat tax but have not offered specifics. Other Republican White House hopefuls have mentioned support for less radical changes to the tax code, usually for some form of rate-lowering and bracket simplification.
Thirty-four percent of voters polled say a flat tax would be more fair than the progressive system currently in place, and 14 percent say it would be equally fair.
The poll was conducted July 23 through July 27 among a national sample of 1,979 registered voters. Results from the full survey have a margin of error of plus or minus 2 percentage points.