Flat tax

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Related to Flat tax: National Sales Tax

Flat tax

A tax which is levied at the same rate on all levels of income. See also progressive tax.

Flat Tax

A way to structure an income tax where everyone (or nearly everyone) pays the same marginal rate. For example, a flat tax may be set at 15%, and everyone will pay that rate regardless of how much they earn. This contrasts with progressive taxation, where the marginal tax rate increases with increased income. Proponents of a flat tax argue that it provides an incentive for people to earn more (because they keep more of what they earn than under a progressive tax system), which in turn spurs economic growth. Opponents contend that a flat tax deprives the government of revenue and progressive taxation does not disincentivize earning more because, even at higher rates, people keep more after taxes than they would have done if they earned less.

flat tax

An income tax that has a single rate of taxation. For example, a taxing authority may levy a flat tax of 3% against gross income. See also graduated flat tax.

Flat tax.

A flat tax, also known as a regressive tax, applies to everyone at the same rate, as a sales tax does.

Advocates of a flat income tax for the United States say it's simpler and does away with the kinds of tax breaks that tend to favor the wealthy. Opponents say that middle-income taxpayers would carry too large a proportion of the total tax bill.

References in periodicals archive ?
Cruz's plan would also get rid of the payroll tax and corporate income taxes and replace them with a flat tax of 16 percent on businesses.
Earlier, Labour shadow Chancellor Ed Balls poured scorn on Conservative claims that they would not bring in a flat tax if they felt they could get away with it.
Dakila Carlo Cua (Lone District, Quirino) said his proposal aims to simplify the taxes for professionals by introducing a flat tax scheme which will significantly raise their tax contribution, thereby increasing government revenue.
The two motions to scrap the flat tax rate and replace it by a non-taxable monthly income of BGN 340 or BGN 400 and progressive taxation in four or six income brackets above the minimum were submitted by opposition Socialists and nationalist Ataka party respectively.
The most unusual feature of the Flat Tax is that it is open.
Consider first the case of a relatively straightforward, single-rate consumption tax that, like the flat tax, eliminates most major tax-base reductions, but, unlike the flat tax, provides no personal exemptions or tax shelters for housing wealth.
Other variations on the flat tax were introduced during 1996, including Gephardt's 10% Tax, the Gramm plan, the Mack plan and the Domenici/Nunn plan.
Depardieu's move to Russia means that he will be paying the 13% flat tax rate in Russia rather than the 75% top marginal rate in France.
According to economists, the flat tax rate of 10 percent may have to undergo revision in the middle run if it becomes evident that the economy is not going to liven up in keeping with the government expectations.
Congress in Florida's District 25, Republican candidate Paul Crespo has announced a bold Flat Tax plan he pledges to introduce in the House of Representatives when elected.
The impact and cost of taxation in Canada; the case for flat tax reform.
A FLAT TAX revolution is under way in the former communist bloc.