What if the US tax system was completely reset and rebuilt from scratch?
I asked ChatGPT to ignore the current tax code and design a system that was simple, fair, and raised roughly the same amount of money.
This is what it came up with:
• First $40,000 per adult tax-free
• 25% flat tax on all income above that
• 25% corporate tax
• 10% national sales tax, split 50/50 with states
• No payroll taxes
• No special capital gains rates
• Almost no deductions, credits, or loopholes
Someone earning $35k pays $0 federal income tax.
If Elon Musk realizes $10B in gains, he pays about $2.5B in tax.
Federal revenue stays around current levels (~$5T/year), states get a large guaranteed revenue stream, and the entire tax code fits on a postcard.
Not my proposal. Just ChatGPT’s answer to a “fresh start” tax system.