Title: Flat Tax - Overview, Examples, How the Flat Tax System Works
Headings: Flat Tax
Flat Tax
What is a Flat Tax?
Examples of Flat Tax
Example 1
Example 2
Advantages of Flat Tax
Disadvantages of Flat Tax
Flat Tax vs. Progressive Tax
Flat Tax vs. Regressive Tax
Related Readings

Content: However, with a flat tax, everyone pays a uniform rate, reducing the cost of its implementation. Proponents of flat tax also say that the tax system is fair, compared to other tax systems. Every taxpayer is charged a uniform tax rate, and there are likely to be minimal complaints about certain categories of taxpayers being charged too high while others are charged too low. It is unlike the progressive and regressive tax systems where different groups of taxpayers are charged a different tax rate. Disadvantages of Flat Tax
The opponents of the flat tax say that the tax system is unfair and that it places an excessive burden on low-income earners. Even though the system imposes a uniform tax rate for all income categories, it leaves low-income earners with less money to live comfortably and maintain their standards of living. On the other hand, high-income earners are left with a lot of money to spend that is disproportionate to the net income after taxes for low-income earners. However, this criticism overlooks the fact that most flat tax proposals include an exemption from any taxation for the lowest income earners – like the exemption up to $36,000 in Senator Cruz’s proposal. Flat Tax vs. Progressive Tax
The progressive tax system
Progressive Tax A progressive tax is a tax rate that increases as the taxable value goes up. It is usually segmented into tax brackets that progress to
– In this tax system, a high tax rate is charged on high-income earners while the low-income earners are charged a lower tax rate.