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.
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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.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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References in periodicals archive ?
Of course, the later scheme takes into consideration allowable deductions, but given the much lower rate of 8 percent as opposed to 32 percent, chances are the taxpayer will end up with a lower tax liability if he/she elects the flat-tax scheme.
This feature of the flat-tax reform implies a one-time "lump-sum" tax, or wealth levy, on existing assets.
The size of the personal deductions and the specific flat-tax rates are frequently mentioned when specific flat-tax proposals are examined, but they are really not central to the flat-tax idea.
Most of the proposals can be categorized as either flat-tax plans or consumption-based plans, while the "USA" tax proposal sponsored by Senators San Nunn (D-Ga.) and Pete Domenici (R-N.M.) is a combination of these two concepts.
Steve Forbes's flat-tax candidacy vaulted him to the covers of Time and Newsweek--and will almost certainly affect the tenor of the debate between President Clinton and Bob Dole in the fall.
Is there anything at all to like about the flat-tax idea?
When millionaire magazine publisher Steve Forbes showed up to promote his flat-tax schemes, MacKenzie nailed him.
The purest of flat-tax proposals would clear the tax code of a bewildering array of deductions, preferences and exemptions.
Flat-tax advocates are nearly evangelistic in their drive to replace the current tax system, often as an integral part of their broader agenda to reshape government.
Allow the people of the state to vote on a constitutional amendment to remove the flat-tax straitjacket.
Like the flat-tax study referred to above, the principles raised in the original document remain relevant today.