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 ?
The other benefit of availing yourself of the optional flat tax is the simplification of compliance with requirements.
The 8% flat tax will only be filed once a year, while VAT and percentage tax shall be filed quarterly.
They said many economies were attracted to an idea of flat tax because traditional taxation system caused reduction in economic growth.
Texas), who is running to be the Republican Party standard bearer in this year's presidential election, is campaigning in part on a proposed reform he is calling the "Simple Flat Tax Plan.
It turned out that the 10 percent flat tax rate didn't brought about economic development and so the question is if time has come to restructure this regime and move on to a regime of moderate progressive taxation," Gacov says.
I recommend every country to introduce the flat tax, because the private sector will have a more quality use of the money than the country ever will, stressed Gruevski.
Instead, aAaAaAeAeAaAeAeA flat tax means that everyone pays the same tax rate.
The flat tax would add more fairness to the tax code, ensuring that "no hedge fund manager pays less than his secretary," Cruz said at the debate.
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 Tories have distanced themselves from Mr Letwin, insisting that there will be no flat tax despite strong support for the idea within the party.
A flat tax has to be considered in this light--for example, the authors did not refer to the economic effects of removing the mortgage interest deduction or the social value of giving each American the opportunity to own a home.
According to Rizaov, the Minister of Finance and the father of the economic wonder according to Doing Business, Zoran Stavreski, is preparing a salto mortale of the flat tax while the Government is preparing a law on dramatic increase of taxes in a delicate pre-election moment.