Does No Taxable Income Put You In The 10 Percent Rate Tax Bracket?

So you want to get rid of all taxes, Federal, State and local, and replace them with a 10% tax on all incomes, which would be the sole source of revenue for all levels of government in the US? All incomes basically adds up to the national GDP, so your revenue is 10% of GDP. Let's try and make a balanced budget that adds up to 10% of GDP. Just for context, the current budget for all levels of government combined is about 40% of GDP, so we're cutting spending by 75%. Let's start with existing Federal spending: 2% of GDP on interest on debt - can't get rid of that 3% of GDP on the military - let's take that down to the 2% required by NATO (cutting the military budget by a third is going to tough, but you want small government, right?) 1% goes on veterans benefits - it wouldn't be fair to get rid of that, although if the military is smaller in the future that will come down 3% goes on Medicare - do the elderly need healthcare? Let's just give them the bare minimum, lots of other things will be cheaper if the old just hurried up and died. We'll call that 1% 5% on social security - if the elderly are dying sooner, we won't need as much of this. Let's cut that by 60% to 2%. 1% goes on transportation, education and law enforcement - I don't think we can cut any of that That brings us up to 9%. So you've 1% of GDP left for everything else the federal government does (supporting those on low incomes, foreign affairs, making sure new drugs are safe, etc) and everything state and local governments do (that's most of education, law enforcement, local transport infrastructure). All of that combined needs to be cut by 96%.

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