Did 1.2 Million People "Drop Out of the Labor Force"?

Did 1.2 Million People "Drop Out of the Labor Force"?

Summary

It is being said that 1.2 million people "dropped out of the labor force" between December 2011 and January 2012.  

Each year, the Census Bureau updates their population estimates. For January 2012, the Bureau of Labor Statistics used these adjusted population estimates instead of the estimates they used December 2011.  If these adjustments were applied to December, they would have caused the estimated size of the "persons not in the labor force" to increase by 1.252 million. 

In other words, 1.2 million people (1.177 million) did not "drop out of the labor force" between December and January.  The changes to the population estimates increased the numbers by 1.252 million, so actually about 75,000 people entered the labor force (1.177 million - 1.252 million = 75,000.)

Updated Population Estimates Cause Higher Numbers

According to the Bureau of Labor Statistics:

Effective with data for January 2012, updated population estimates which reflect the results of Census 2010 have been used in the household survey. Population estimates for the household survey are developed by the U.S. Census Bureau. Each year, the Census Bureau updates the estimates to reflect new information and assumptions about the growth of the population during the decade.

...

In accordance with usual practice, BLS will not revise the official household survey estimates for December 2011 and earlier months.

http://www.bls.gov/news.release/empsit.nr0.htm

The Bureau of Labor Statistics (BLS) uses population estimates from the U.S. Census Bureau to calculate their data.  If the population estimates increase, then so will the estimates of data, such as the number of unemployed or the "persons not in the labor force."  Since the BLS data for January 2012 uses the updated population estimates, it will naturally be higher than the December 2011 data, which uses previous population estimates.

According to the BLS, that is what happened:

The adjustment increased the estimated size of the civilian noninstitutional population in December by 1,510,000, the civilian labor force by 258,000, employment by 216,000, unemployment by 42,000, and persons not in the labor force by 1,252,000.

http://www.bls.gov/news.release/empsit.nr0.htm

If the December 2011 BLS data had used the updated population estimates that were used for the January 2012 data, the number of "persons not in the labor force" would have been 1.252 million higher than previously reported.

The Numbers When Population Increases Are Ignored

Since the published BLS data for January 2012 and December 2011 use different population estimates, they cannot be accurately compared directly to each other.  They should be adjusted for the different population estimates.

According to the Bureau of Labor Statistics:

(Numbers in thousands) 

Category	December to January change as published	2012 population control effect	December to January changes after removing population control effect
Civilian noninstitutional population	1,685	1,510	175
Civilian labor force	508	258	250
Not in labor force	1,177	1,252	-75

http://www.bls.gov/news.release/empsit.nr0.htm

The amount of people who "dropped out of the labor force" between December and January was published to be 1.177 million, (or 1.2 million rounded.)  However, the number of persons "not in labor force" for December would have been 1.252 million higher if December used the same population estimate as January.

When this is taken into effect, the number of persons "not in the labor force" actually decreased by about 75,000 people.  In other words, people did not "drop out of the labor force."  About 75,000 entered the labor force between December and January.

Also, it should be noted the population estimates increased all numbers for January relative to December:

(Numbers in thousands) 

Category	December to January change as published	2012 population control effect	December to January changes after removing population control effect
Employed	847	216	631
Unemployed	-339	42	-381
Unemployment rate	-.2	.0	-.2

http://www.bls.gov/news.release/empsit.nr0.htm

The number of unemployed actually decreased by more than published, but the number of employed actually increased by less than published.  Thus, the actual unemployment rate is roughly the same as published.





Link to this article:

http://articlesonpolitics.blogspot.com/2012/02/why-12-million-people-dropped-out-of.html

Why Perry, Gingrich, Huntsman and Santorum Are Not on the Virginia Ballot

Why Perry, Gingrich, Huntsman and Santorum Are Not on the Virginia Ballot

Summary

On January 13, 2012, the Court denied a request, by Rick Perry and other candidates, to order the placement of their names on the Republican primary ballot in Virginia.  The decision was made by Judge John A. Gibney, Jr. of the Richmond Division of the United States District Court for the Eastern District of Virginia.

The original lawsuit was filed by Rick Perry. Newt Gingrich, Rick Santorum and Jon Huntsman also later intervened.

Virginia requires 10,000 valid signatures for a candidate to be placed on the ballot. The petitions can only be circulated by Virginia residents.  Perry, Gingrich, Huntsman and Santorum did not have the required number of valid signatures by the deadline of December 22, 2011.

All of them submitted fewer than 10,000 total signatures, except possibly Gingrich, who claims to have submitted 11,050.

Judge Gibney believed it would likely be declared unconstitutional to require the petitions to be circulated by Virginia residents, but he did not think the 10,000 signature requirement was unconstitutional.  He denied their request to be placed on the ballot because he felt the candidates should have filed suit earlier and the Court would have ordered the Board of Elections to not enforce the residency requirement. Then the candidates would have still been able to meet the 10,000 signature requirement before the deadline.

Basically they waited too long to file suit about the residency requirement, and now it’s too late for them to collect the 10,000 signatures to get themselves on the ballot before the January 21 deadline for absentee ballots to be mailed.  It's even too late for them to revise the absentee ballot in time to meet their deadline.


Virginia's 10,000 Signature Requirement

Candidates must file a petition "signed by at least 10,000 qualified voters, including at least 400 qualified voters from each congressional district in the Commonwealth." 

Code of Virginia § 24.2-545(B) 

The deadline to file the petitions with the State Board of Elections was December 22, 2011.

Rick Perry filed petitions with fewer than 10,000 signatures.

Newt Gingrich claimed to have filed 11,050 signatures. Virginia State Board of Elections stated that fewer than 10,000 were valid, but they didn't know the precise number of signatures.

Jon Huntsman did not file any petitions because he didn't have the 10,000 signatures.

Rick Santorum says he submitted more than 8,000 signatures, but he claims his petitions were denied because they didn't have 10,000 total signatures.

Generally, candidates try to collect more than the required number of signatures, in case some of the signatures are invalid.  Newt Gingrich is the only one who might have collected more than 10,000 total signatures.  The rest of the candidates collected fewer than 10,000 signatures.

The candidates complained that the 10,000 signature requirement is unconstitutional as unreasonably burdensome.  Also, they complained that they couldn't get the 10,000 signatures because of Virginia's residency requirement.


Virginia's Residency Requirement

According to the Virginia State Board of Elections, the person who circulates the petition must sign an affidavit at the bottom the petition: 

(i) My resident address is ____

(ii) I am, or I am eligible to be, a registered and qualified voter in Virginia in the County/City of ____

(iii) I am, or eligible to be, qualified to vote for the office for which this petition is circulated

(iv) I personally witnessed the signature of each person who signed this page or its reverse side. 

http://www.sbe.virginia.gov/cms/documents/20120306SBE-545_letter.pdf 

Basically the petition circulators must be Virginia residents.

The candidates claim they could have met the 10,000 signature requirement if they had been able to use non-residents to circulate petitions in Virginia.

Joe Allbaugh, the national campaign chair for Rick Perry, testified that Perry has thousands of out-of-state volunteers lined up to circulate petitions in Virginia.

Blake Harris, the ballot access coordinator for the Huntsman campaign, testified that buses of college students from Washington, D.C. were available as petition circulators.

Mark Tate, the Virginia ballot access coordinator for Santorum for President, listed five individuals who collected signatures in Virginia that were unable to be counted because of the residency restriction. 

Judge Gibney's Findings

http://docs.justia.com/cases/federal/appellate-courts/ca4/12-1042/12/ 

The Court believes that the residency requirements for petition circulators will likely be declared unconstitutional, and the plaintiffs will ultimately prevail. (p. 18) 

The Court finds that the plaintiffs are not likely to prevail on their challenge to the 10,000 signature requirement.  The Court, therefore, cannot fashion relief that does not include compliance with the 10,000 signature requirement. (p. 20) 

Had the case been timely filed, the Court would have ordered the defendants not to enforce the residency requirement for petition circulators, and the plaintiffs could have tried, with the expanded pool of campaign workers, to get the 10,000 signatures. (p. 22) 

The plaintiffs have waited too long to file, and the doctrine of laches bars their claim.  The Commonwealth is far along in the electoral process.  The primary election is so close that the plaintiffs cannot gather the requisite signatures to get on the ballot. (p. 22)

The hearing was January 13.  Virginia’s primary is March 6.  That is 53 days later.  Is the election too close that the plaintiffs cannot gather the rest of their signatures in time to get on the ballot?

The answer lies with absentee ballots.

Absentee Ballots

Judge Gibney noted: 

To comply with federal law, absentee ballots must be distributed on or before January 21, 2012. (p. 11)

According to the Uniformed and Overseas Citizens Absentee Voting Act, 42 U.S.C. §1973ff-1(a)(8)(A), absentee ballots must be mailed “at least 45 days before an election for Federal Office, not later than 45 days before the election.”

The Virginia primary is March 6.  45 days before that day is January 21.  This hearing was on January 13. 

Don Palmer, the Secretary of the State Board of Elections, testified that "as of this date, absentee ballots cannot be prepared before they must be available." (p. 11)

Calculate Your Income Tax Under the GOP Candidates' Plans

Calculate Your Income Tax Under the GOP Candidates' Plans

Use this calculator to find out how much income tax you would pay under the tax plans of Newt Gingrich, Jon Huntsman, Rick Perry or Ron Paul.  Simply fill in your 2011 income and filing status and click the "Calculate" button to see the results.  You may also claim your spouse, children or other deductions by filling in the respective fields.

Enter your values for the 2011 tax year


Income:

Spouse
Number of Children:

Mortgage Interest:
State and Local Taxes:
Charitable Contributions:
Capital Gains and Dividends:

Filing Status:

Single
Married filing jointly
Married filing separately
Head of household (with qualifying person)
Qualifying widow(er) with dependent child





Results


Newt Gingrich:

Rick Perry:

Ron Paul:

Jon Huntsman:


Michele Bachmann, Gary Johnson, Mitt Romney, Rick Santorum do not have specific enough plans to calculate.





Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/calculate-your-income-tax-under-gop.html

The Republican Candidates Individual Income Tax Plans

The Republican Candidates Individual Income Tax Plans

Michele Bachmann

We need to reduce the number of tax brackets.

http://www.michelebachmann.com/issues/americanjobsrightnow/

It appears to be the closest to Jon Huntsman’s plan.  Although she never mentions eliminating any deductions and credits. 

Newt Gingrich

Newt Gingrich’s individual income tax plan is a 15 percent optional flat tax with some deductions and credits.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-newt-gingrichs-individual.html 

Jon Huntsman

Jon Huntsman’s individual income tax plan eliminates all deductions and credits (besides the standard deduction and exemption) and reduces the marginal tax rates to 8, 14 and 23 percent.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-jon-huntsmans-individual.html

Gary Johnson

Simplify the tax code; stop using it to reward special interests and control behavior.

http://www.garyjohnson2012.com/issues/economy-and-taxes

Mitt Romney

Pursue a conservative overhaul of the tax system over the long term that includes lower, flatter rates on a broader base.

http://www.mittromney.com/jobs/tax

Ron Paul

Ron Paul’s individual income tax plan is eliminating the individual income tax.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-ron-pauls-individual-income.html

Rick Perry

Rick Perry’s individual income tax plan is a 20 percent optional flat tax with a few deductions.

Here is a more detailed analysis:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-rick-perrys-individual.html

Rick Santorum

Rick Santorum’s individual income tax plan is:

• Cut the number of tax rates to 2 rates - 10% and 28%
• Triple the personal deduction for each child
• Eliminate marriage tax penalties
• Retain deductions for charitable giving, home mortgage interest, healthcare, retirement savings, and children

http://www.ricksantorum.com/pressrelease/santorum-releases-made-america-plan-revitalize-us-economy.

 

Link to this article:


http://articlesonpolitics.blogspot.com/2011/12/republican-candidates-individual-income.html

Republican Candidate’s Effective Individual Income Tax Rates

Republican Candidate’s Effective Individual Income Tax Rates

Summary

For singles, Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

For married couples with no children, Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.  Although, both Ron Paul and Newt Gingrich have a 0 percent rate between $20,000 and $40,000 ($60,000 if they take all the deductions.)

As far as married couples with children, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $70,000 to $80,000 (depending on family size), after which Ron Paul has the lower rates.

For those who only take the standard deduction, Newt has the lowest rates for those below around $55,000 to $70,000, and Ron Paul has the lowest rates for those above. Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

Ron Paul

Ron Paul’s plan is simple.  It eliminates the income tax, so everybody pays a 0 percent rate.

Rick Perry

To calculate the taxes under Rick Perry’s plan, the income was subtracted by the $12,500 standard exemption ($25,000 for married couples and $12,500 per dependent or child.) For those who itemize, the average mortgage interest, state and local taxes and charitable contribution deductions were taken from the IRS statistics for 2009. Those with the standard deduction only deducted state and local taxes.  The remainder is the taxable income, which was multiplied by 20 percent to get the total tax.
 

Here are the effective 2010 tax rates for those who only take the standard exemption and deduct the average state and local taxes:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.00%	4.29%	9.32%	11.71%	13.06%	13.90%	14.77%	15.07%	15.62%	15.28%	16.39%	17.34%	17.83%
	0	0.00%	0.00%	0.99%	5.46%	8.06%	9.73%	11.20%	11.95%	12.84%	12.78%	15.14%	16.84%	17.58%
married	1	0.00%	0.00%	0.00%	0.00%	3.06%	5.57%	7.63%	8.82%	10.06%	10.28%	13.89%	16.34%	17.33%
filing	2	0.00%	0.00%	0.00%	0.00%	0.00%	1.40%	4.06%	5.70%	7.29%	7.78%	12.64%	15.84%	17.08%
jointly	3	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.49%	2.57%	4.51%	5.28%	11.39%	15.34%	16.83%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.00%	0.00%	2.42%	6.08%	8.41%	9.69%	11.16%	11.61%	12.54%	11.83%	13.57%	15.38%	16.32%
	0	0.00%	0.00%	0.00%	0.00%	3.41%	5.52%	7.59%	8.48%	9.76%	9.33%	12.32%	14.88%	16.07%
married	1	0.00%	0.00%	0.00%	0.00%	0.00%	1.35%	4.02%	5.36%	6.99%	6.83%	11.07%	14.38%	15.82%
filing	2	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.45%	2.23%	4.21%	4.33%	9.82%	13.88%	15.57%
jointly	3	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.43%	1.83%	8.57%	13.38%	15.32%

Newt Gingrich

To calculate the taxes under Newt Gingrich’s plan, the income was subtracted by the $12,000 personal deduction ($48,000 for married couples.) For those who itemize, the average mortgage interest and charitable contribution deductions were taken from the IRS statistics for 2009 (which is the latest version.)  The remainder is the taxable income, which was multiplied by 15 percent to get the total tax.  Then the Child Tax Credit and Earned Income Tax Credit were subtracted from the tax, where applicable.

Here are the effective 2010 tax rates for those who only take the standard personal deduction:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	-2.60%	6.00%	9.00%	10.50%	11.40%	12.00%	12.43%	12.75%	13.00%	13.20%	14.10%	14.64%	14.82%
	0	-4.50%	0.00%	0.00%	0.00%	0.60%	3.00%	4.71%	6.00%	7.00%	7.80%	11.40%	13.56%	14.28%
married	1	-30.50%	-15.25%	-5.60%	-0.20%	0.00%	1.33%	3.29%	4.75%	5.89%	6.80%	11.40%	13.56%	14.28%
filing	2	-40.10%	-25.15%	-10.77%	-2.80%	0.00%	0.00%	1.86%	3.50%	4.78%	5.80%	11.40%	13.56%	14.28%
jointly	3	-45.10%	-28.30%	-12.87%	-4.38%	0.00%	0.00%	0.43%	2.25%	3.67%	4.80%	11.40%	13.56%	14.28%

Here are the effective 2010 tax rates for those who also deduct the average mortgage interest and charitable contributions:

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	-2.60%	0.00%	3.83%	6.28%	7.91%	8.84%	9.72%	10.15%	10.69%	10.61%	11.99%	13.17%	13.69%
	0	-4.50%	0.00%	0.00%	0.00%	0.00%	0.00%	2.01%	3.40%	4.69%	5.21%	9.29%	12.09%	13.15%
married	1	-30.50%	-15.25%	-5.60%	-0.20%	0.00%	0.00%	0.58%	2.15%	3.58%	4.21%	9.29%	12.09%	13.15%
filing	2	-40.10%	-25.15%	-10.77%	-2.80%	0.00%	0.00%	0.00%	0.90%	2.47%	3.21%	9.29%	12.09%	13.15%
jointly	3	-45.10%	-28.30%	-12.87%	-4.38%	0.00%	0.00%	0.00%	0.00%	1.36%	2.21%	9.29%	12.09%	13.15%

Jon Huntsman

To calculate the taxes under Jon Huntsman’s plan for 2010, the income was subtracted by a $3,650 exemption for the individual, spouse and children. Then it is subtracted by the standard deduction, which is $5,700 for singles and  $11,400 for married filing jointly. The result is the taxable income.  The tax brackets shown in the previous sections were used to calculate the tax.  The first $34,000 ($68,000 for married) of taxable is taxed at 8 percent.  After that, the taxable income is taxed at 14 percent, if there is any, and so on according to the rates.

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	0.52%	4.26%	5.51%	6.13%	7.30%	8.42%	9.22%	9.81%	10.28%	10.65%	13.17%	19.07%	21.03%
	0	0.00%	0.52%	3.01%	4.26%	5.01%	5.51%	5.86%	6.13%	6.56%	7.30%	10.65%	17.56%	20.28%
married	1	0.00%	0.00%	2.04%	3.53%	4.42%	5.02%	5.45%	5.77%	6.01%	6.79%	10.40%	17.39%	20.19%
filing	2	0.00%	0.00%	1.07%	2.80%	3.84%	4.53%	5.03%	5.40%	5.69%	6.28%	10.14%	17.22%	20.11%
jointly	3	0.00%	0.00%	0.09%	2.07%	3.26%	4.05%	4.61%	5.04%	5.36%	5.77%	9.88%	17.05%	20.03%

Comparison of All the Effective Rates

Here are the numbers in charts:

Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

Besides Ron Paul, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates up until around $20,000.  After that it is Rick Perry until around $40,000.  After that it is Jon Huntsman until the income is into the six figures when it becomes Newt Gingrich again.

However, for those who only take the standard deduction it is Newt until $15,000.  Then it is all Jon Huntsman until the income is in the six figures when it becomes Newt again.

Ron Paul has the lowest rates for most incomes, except the lower incomes because they get the Earned Income Tax Credit.

Besides Ron Paul, for those who deduct mortgage and charitable contributions, Newt has the lowest tax rates the whole time.

For those who only take the standard deduction, Newt is still the lowest, except between $80,000 and $200,000 when Jon Huntsman has the lowest rates.

For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $70,000.  Ron Paul has the lower rates above $70,000.

For those who only take the standard deduction, Newt has the lowest rates for those below around $55,000, and Ron Paul has the lowest rates for those above. Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $75,000.  Ron Paul has the lower rates above $75,000.

For those who only take the standard deduction, Newt has the lowest rates for those below around $60,000, and Ron Paul has the lowest rates for those above. Again, Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

For those who deduct mortgage and charitable contributions, Newt has the lowest tax rates for those lower than around $80,000, after which Ron Paul has the lower rates.

For those who only take the standard deduction, Newt has the lowest rates for those below around $70,000, and Ron Paul has the lowest rates for those above. Again, Jon Huntsman does have a lower rate than Newt between around $100,000 and $200,000.

This chart shows why the previous chart was cut off at –10.00%:

 

Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/effective-tax-rates-for-all-plans.html

Analysis of Jon Huntsman’s Individual Income Tax Plan

Analysis of Jon Huntsman’s Individual Income Tax Plan

Summary

The plan eliminates all deductions and credits and reduces the tax rates to 8, 14 and 23 percent.  As with the other flat/flatter tax plans, this gives huge tax breaks to those with high incomes, while those with low incomes lose money. In between, benefits increase as income increases and family size decreases.

• The plan is one version of The Zero Plan from the Simpson-Bowles Fiscal Commission.
• It reduces the number of marginal tax rates from 6 to 3.
• It also lowers the rates to 8, 14 and 23 percent.
• However, these lower rates don’t necessarily result in a tax cut because the plan also eliminates all deductions, exemptions and credits.
• Families rely on tax credits, deductions and exemptions to significantly reduce their taxes.
• Lower income households receive tax credits, such as the Earned Income Tax Credit, which give them extra money, even if they don’t pay any income tax. 
• A family of 5 with a $20,000 income loses over $8,000 under the plan. 
• Basically, the plan benefits those who use very few deductions, credits and exemptions, such as a single individual taking only the standard deduction.
• Families with children tend to lose money because they have available tax credits, deductions and exemptions.
• Those who currently itemize their deductions don't gain as much.
• Higher income taxpayers receive large tax cuts, regardless of family size or deductions. 
• Tax cuts get smaller as family size increases and income decreases.

What is Jon Huntsman’s Individual Income Tax Plan?

Here is how Huntsman describes his plan: 

Gov. Huntsman supports a version of the plan crafted by the Fiscal Commission, headed by Erskine Bowles and Alan Simpson, commonly known as the "zero plan". Rather than nibble around the edges of the existing tax code, he will introduce a revenue-neutral plan that eliminates all deductions and credits in favor of three drastically lower rates of 8%, 14% and 23%. 

http://www.jon2012.com/issues/jobs-economy-tax-reform 

Huntsman uses the Simpson-Bowles tax plan, specifically The Zero Plan which eliminates all deductions and credits.  This plan replaces the 10 and 15 percent brackets with an 8 percent bracket; the 25 and 28 percent brackets with a 14 percent; and the 33 and 35 percent brackets with a 23 percent bracket.

These are the current 2010 tax rates:
 

Tax Rate	Single	Married filing jointly or qualifying widow/widower	Married filing separately	Head of household
10%	Up to $8,375	Up to $16,750	Up to $8,375	Up to $11,950
15%	$8,376 - $34,000	$16,751 - $68,000	$8,376 - $34,000	$11,951 - $45,550
25%	$34,001 - $82,400	$68,001 - $137,300	$34,001 - $68,650	$45,551 - $117,650
28%	$82,401 -$171,850	$137,301 - $209,250	$68,651 - $104,625	$117,651 - $190,550
33%	$171,851 – $373,650	$209,251 - $373,650	$104,626 - $186,825	$190,551 - $373,650
35%	$373,651 or more	$373,651 or more	$186,826 or more	$373,651 or more

These are the 2010 tax rates as they would have been under Huntsman's plan:
 

Tax Rate	Single	Married filing jointly or qualifying widow/widower	Married filing separately	Head of household
8%	Up to $34,000	Up to $68,000	Up to $34,000	Up to $45,550
14%	$34,001 - $171,850	$68,001 - $209,250	$34,001 - $104,625	$45,551 - $190,550
23%	$171,851 or more	$209,251 or more	$104,626 or more	$190,551 or more

These are marginal rates.  This means different portions of the total income are charged different rates. For example, a single person making $100,000 is not taxed at 14 percent (which would be $14,000 in taxes.) Their first $34,000 is taxed at 8 percent ($2,720.) Their next $66,000 is taxed at 14 percent ($9,240.) So their total tax is only $11,960, which is 11.96 percent instead of 14 percent.
 

How much do people pay under Jon Huntsman’s Plan?

To calculate the taxes under Jon Huntsman’s plan for 2010, the income was subtracted by a $3,650 exemption for the individual, spouse and children. Then it is subtracted by the standard deduction, which is $5,700 for singles and  $11,400 for married filing jointly. The result is the taxable income.  The tax brackets shown in the previous sections were used to calculate the tax.  The first $34,000 ($68,000 for married) of taxable is taxed at 8 percent.  After that, the taxable income is taxed at 14 percent, if there is any, and so on according to the rates.

Here is how much people would have paid under Jon Huntsman’s income tax plan in 2010:
 

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($52)	($852)	($1,652)	($2,452)	($3,651)	($5,051)	($6,451)	($7,851)	($9,251)	($10,651)	($26,343)	($95,343)	($210,343)
	0	$0	($104)	($904)	($1,704)	($2,504)	($3,304)	($4,104)	($4,904)	($5,902)	($7,302)	($21,302)	($87,787)	($202,787)
married	1	$0	$0	($612)	($1,412)	($2,212)	($3,012)	($3,812)	($4,612)	($5,412)	($6,791)	($20,791)	($86,947)	($201,947)
filing	2	$0	$0	($320)	($1,120)	($1,920)	($2,720)	($3,520)	($4,320)	($5,120)	($6,280)	($20,280)	($86,108)	($201,108)
jointly	3	$0	$0	($28)	($828)	($1,628)	($2,428)	($3,228)	($4,028)	($4,828)	($5,769)	($19,769)	($85,268)	($200,268)

Red and in parenthesis means they pay taxes. Otherwise, they receive a refund in the amount shown.

Basically those who earn less than the standard deduction and exemption pay $0 in taxes.  For single individuals, it is slightly less than $10,000.  For families it's around between $20,000 and $30,000 depending on the number of children.

Other than that, the best gauge of the rates is to compare them wiht the current tax code.
 
How Does Jon Huntsman’s Plan Compare to the Current Tax Code?

The 2010 taxes under the current tax code are calculated using only the standard deduction and personal exemptions.  The Child Tax Credit and Earned Income Tax Credit were taken where possible. For those who itemize deductions, the average total itemized deductions from the IRS statistics for 2009 (which is the latest version) were used instead of the standard deduction. 

Here is how much people would have gained under Huntsman’s income tax plan in 2010 if they only took the standard deduction:
 

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($249)	$331	$1,031	$1,731	$2,699	$3,799	$4,899	$5,999	$7,099	$8,447	$21,688	$54,028	$114,028
	0	($457)	$27	$229	$657	$1,357	$2,057	$2,757	$3,357	$3,992	$4,892	$17,706	$50,977	$110,977
married	1	($4,050)	($4,050)	($2,525)	($681)	$102	$802	$1,502	$2,102	$2,602	$3,490	$17,195	$50,539	$110,539
filing	2	($5,060)	($7,036)	($5,149)	($2,843)	($1,154)	($454)	$246	$846	$1,346	$2,089	$16,684	$50,393	$110,101
jointly	3	($5,561)	($8,216)	($6,854)	($4,546)	($2,409)	($1,709)	($1,009)	($409)	$91	$687	$16,644	$51,232	$109,663

Red numbers in parenthesis means they lose money under Jon Huntsman’s plan.
 
Here are the gains for those who also itemize their deductions at the average rate:
 

	Children	$10,000	$20,000	$30,000	$40,000	$50,000	$60,000	$70,000	$80,000	$90,000	$100,000	$200,000	$500,000	$1,000,000
single	0	($315)	($818)	($522)	$51	$352	$312	$1,412	$1,874	$2,974	$2,374	$8,030	$20,494	$55,432
	0	($457)	($104)	($166)	($121)	$322	$820	$1,520	$1,737	$2,039	$919	$6,583	$19,437	$54,375
married	1	($4,050)	($4,050)	($2,920)	($1,277)	($933)	($436)	$264	$482	$982	($117)	$6,072	$18,999	$53,937
filing	2	($5,060)	($7,036)	($5,546)	($3,393)	($2,189)	($1,691)	($991)	($774)	($274)	($1,154)	$5,652	$19,078	$53,499
jointly	3	($5,561)	($8,216)	($6,890)	($5,096)	($3,280)	($2,947)	($2,247)	($2,029)	($1,529)	($2,190)	$5,250	$19,917	$53,061

Here are the numbers in a chart:

This is why the chart doesn't include $200,000 and above:

 

As with most flat taxes, the higher income taxpayers receive large tax cuts, and the lower income taxpayers lose money.  However, for the single individuals and married couples with no children, as their income increases to around $20,000 and above they receive a tax cut, if they currently only take the standard deduction.  The tax cuts grow larger as their income increases.

Although, if they currently itemize their deductions, the income level where they begin to get tax cuts is closer to $40,000 to $50,000.  

Lower income families lose thousands of dollars because they don't receive refundable tax credits, like the Earned Income Tax Credit and the Child Tax Credit, which gives them refunds even when they pay no tax. That is why a family of 5 with a $20,000 income loses over $8,000 under the plan.

The Child Tax Credit is $1,000 per child, so a family with 3 children and an income of $80,000 still loses money, if they take the standard deduction.  If they itemize at the average rate, they are losing money even at $100,000.

 

Basically, the plan benefits those who use very few deductions, credits and exemptions, such as a single individual taking only the standard deduction.  Families with children tend to lose money because they have available tax credits, such as the Child Tax Credit and the Earned Income Credit.  Those who currently itemize their deductions don't gain as much.  The higher income taxpayers receive large tax cuts, and the tax cuts get smaller as family size increases and income decreases.


Link to this article:

http://articlesonpolitics.blogspot.com/2011/12/analysis-of-jon-huntsmans-individual.html