A Flat Tax Is A Tax

1051 Words Mar 3rd, 2016 5 Pages
A flat tax is a tax that is applied at a consistent rate with no variables in its application. In contrast with progressive or regressive taxes, where the rate levied varies by income or according to other parameters, a flat tax means that everyone pays the same percentage. Flat taxes can be levied as sales or excise taxes, but the term is referred to the proposal of a single rate for all taxes on personal income (“History and Debate of Flat Tax”). The proposal for a flat tax has been brought forward for debate on several occasions over the past few decades. At times, it is brought forward in the form of a flat tax on consumption, in a modified form on income tax allowing for some adjustments or deductions, and as a true flat tax on income with absolutely no exceptions. The proposal of a flat tax seems fair to a majority of the American people, however, it does not sound fair to everyone. Would implementing a flat tax really offer more income equality amongst American taxpayers? First and foremost, there are always pros and cons of every issue. The same applies to flat taxes, however, there are more drawbacks to the implementation of a flat tax system than there are benefits. In reality, a flat tax system does not offer income equality amongst taxpayers. If the United States switches to a flat tax system, it would greatly exacerbate longstanding growth in income inequality (Frank 1). A flat tax would increase inequality by substantially reducing rates on wealthy…

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