The Forbes' flat tax plan eliminates the double taxation on personal savings, dividends and capital gains.
To determine what income class will carry the tax burden under a flat tax plan, the tax data was classified in three income levels.
To date, few empirical tests have been conducted to determine any effect the proposed flat tax plans might have on the distribution of tax burden.
In this week's op-ed, Cruz framed his flat tax plan
in the vein of the tax cut that Reagan signed into law in 1981.
* The Armey & Shelby Flat Tax Plan
, which would make all interest, dividends and capital gains non-taxable.
During a question-and-answer session with the audience, Perry was asked if his flat tax plan
would include the standard deduction in the current tax system.
Perry has designed his plan with the help of publishing magnate Steve Forbes, whose own 17 percent flat tax plan
was the linchpin of his unsuccessful 1996 and 2000 runs for the Republican presidential nomination.
Under the various flat tax plans
, many forces might act to change the new equilibrium interest rate.
Of the flat tax plans
they would have the most negative impact on the municipal bond market.
The flat tax plans
would eliminate the deductibility of state and local taxes and would eliminate the current tax preference for tax-exempt municipal bonds, because federal taxes would no longer apply to the interest payments to individuals or corporations from corporate bonds.
The opening salvos of the GOP Presidential campaign debate in Iowa reverberated in the nation's capital last week with the introduction of a series of rival federal flat tax plans
and a GOP national commission report.