TITLE:
U.S. Zero-Deficit Linear Income Tax Schedules
AUTHORS:
Robert A. Agnew
KEYWORDS:
Deficit Elimination, Linear Income Tax, Income Inequality, Gini Index
JOURNAL NAME:
Theoretical Economics Letters,
Vol.16 No.5,
October
9,
2026
ABSTRACT: Using 2023 stratified gross income tables from both the U.S. Census Bureau and the U.S. Internal Revenue Service, combined with a $4 trillion revenue requirement based on U.S. Treasury data, we demonstrate four alternative zero-deficit linear individual income tax schedules with varying progressivity. Based on the IRS table, these schedules vary from a non-progressive 25.9% flat tax with no reduction in income inequality to a highly progressive version with a 60% marginal tax rate, a $33,191 universal basic income subsidy, and a 46% reduction in Gini income inequality. We conclude that a highly graduated tax schedule is not necessary to achieve a fairer distribution of post-tax income. A simple linear tax schedule will do the job while completely eliminating the federal deficit and setting the U.S. on a sustainable fiscal path.