Flat tax

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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 ?
According to Goranov, the idea is to let local governments choose whether to stick to the 10% flat income tax to attract investment to their municipalities, or collect more money, for example in cities with low unemployment rates.
As the Tax Law imposes a flat income tax of 10% on foreign individuals (except employees) and entities resident in Qatar, any foreign individuals or entities performing consultancy services for Qatari entities from outside of Qatar will be subject to 5% withholding tax for technical fees.
The Tax Court held that a land surveying company was a personal service corporation subject to a 35% flat income tax rate because it was engaged in engineering, despite the fact that it performed no work requiring an engineering license under state law.
He found that a flat income tax of 38 percent was enough not only to support a BIG large enough to eliminate poverty but also to continue to support everything else the U.
The fact that the refunds are tilted toward those at the top of the economic pyramid suggests that despite its relatively flat income tax system, Oregon collects most of its taxes from people in the higher income brackets.
There are few advantages in using a C corporation for a PSC because of the required calendar year and the 35% flat income tax (Sec.
Finally, if I am correct in thinking that the flat consumption tax beats the flat income tax, then there is additional reason to embrace the consumption tax: It alone does not distort intertemporal decisions on consumption.
The new post-Soviet consensus is that only a low flat income tax is collectible.
Unless a flat income tax is financed by big increases in other levies, it's hard to see how it could be introduced without exacting a lot of pain on middle-earners.
None of the reforms launched under Putin except for the flat income tax has been a success so far.
These range from a flat income tax rate and negotiable prices for commercial gas and electricity to tax-deductible provisions for field abandonment and reinvestment in exploration.