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 ?
These flat rate taxes are particularly regressive; for the lowest 20% of earners in Pakistan this amount is equal to approximately 3-10 days' income.
Flat rate taxes on comprehensive bases for income and consumption are added as appropriate.
The former would be subject to a flat rate tax of up to 75% of the gross proceeds from casino gambling, despite the fact that online casinos and gaming rooms are taxed 20%.
As a micro-enterprise, the company would pay a flat rate tax of 20 percent of 70,000 lats, which is 14,000 lats.
UKIP's future policies would include leaving the EU so we could trade freely across the globe, proposing a flat rate tax system, improving the NHS with local funding, freeze permanent immigration for five years while overcrowding is dealt with, letting the people get involved in making moral decisions by having referendums on important issues that affect us all.
One of the party's policies is to abolish income tax and replace it with a flat rate tax - may as well call it the poll tax.
The PM views gambling with distaste and in his last budget as Chancellor levied a surprise 15 per cent flat rate tax on casinos and a 50 per cent band for those with revenues above pounds 10million.
The Chancellor also dealt a blow to large casino operators by announcing that alongside a new 15 per cent tax flat rate tax, there would also be a higher, 50 per cent tax band created for those with revenues above pounds 10 million.
Poland exempts from taxation winners' prizes paid by Polish lotteries or subjects them to a flat rate tax of 10%.
And company car drivers pay only minimal income tax on it because commercial vehicles run as company cars attract an annual flat rate tax liability of just pounds 500 rather than being calculated on price and CO2 output as with cars.
And company car drivers pay only minimal income tax on it as commercial vehicles run as company cars attract an annual flat rate tax liability of just pounds 500 rather than being calculated on price and CO2 output.
The AMT uses a flat rate or near flat rate tax bracket structure after the exemption amount has been exceeded.