Flat Tax

What Does Flat Tax Mean?
A system that taxes everyone at the same rate, regardless of their income bracket.

Investopedia explains Flat Tax
Supporters of a flat tax argue that it gives people incentive to earn more, because they wouldn't be penalized by graduating to a higher tax bracket (as they would in a progressive-rate system).

Related Terms

Dual Rate Income Tax
Economic Recovery Tax Act Of 1981 - ERTA
Goods and Services Tax - GST
Income Tax
Progressive Tax
Regressive Tax
Tax Bracket
Tax Fairness
More Related Terms

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