Title: Flat Definition
Headings: Flat Tax
Flat Tax
What Is a Flat Tax?
Understanding a Flat Tax
Flat Taxes vs. Regressive and Progressive Taxes
Real-World Examples
Article Sources

Content: Understanding a Flat Tax
Supporters of a flat tax system propose that it gives taxpayers an incentive to earn more because they are not penalized with a higher tax bracket. Also, flat tax systems make filing easier. Critics of flat taxes argue that the system places an unfair burden on low-wage earners in exchange for lowering tax rates on the wealthy. Critics believe a progressive tax system is fairer than a flat tax system. Flat Taxes vs. Regressive and Progressive Taxes
While a flat tax imposes the same tax percentage on all individuals regardless of income, many see it as a regressive tax. A regressive tax is one in which the government taxes high-income earners at a lower percentage of their income and low-wage earners at a higher percentage of their income. The tax is seen as regressive due to a more significant portion of the total funds available to the low-income earner going to the tax expenditure. While the upper-income payer still pays the same percentage, they have enough income to offset this tax load. A sales tax is an example of a regressive tax, although at first glance it may appear to be a flat tax. For example, imagine two people each buy $100 worth of T-shirts and pay a 7% sales tax.