flat taxes

Same-rate taxation system

A flat tax is a tax system where everyone pays the same percentage rate regardless of income—as opposed to progressive taxes, where rates increase as income rises.

Proponents argue flat taxes are simpler and fairer; critics counter that they burden lower earners more heavily since the same percentage represents a larger share of their disposable income.

Several Eastern European countries have adopted flat taxes.

mechanics

rate

Measured speed or charge

  • revenueBusiness income total
  • incomeRegular monetary receipts
  • levyCompulsory government charge

collection · exemption · threshold · withholding · enforcement · filing · percentage · calculation

debate

controversy

Prolonged public disagreement

opposition · advocates · proponents · critics · lobbying · campaigns · ideological · supply-side · trickle-down · conservative

fairness

proportional

Scaled to match another

nondiscriminatory · consistent · unbiased · across-the-board · parity

simplicity

streamlined

Made smooth and efficient

clear-cut · transparent · administrable · manageable · fixed-rate · uncomplicated · compliance · understandable · accessible · predictable

examples

Estonia

Northern Baltic republic

  • LatviaBaltic republic, northern Europe
  • LithuaniaBaltic European republic
  • RussiaEurasian federation, largest country

Slovakia · Romania · Georgia · Ukraine · Albania · Bulgaria · post-Soviet · tithe · capitation

criticism

regressive

Reverting to earlier stages

inequality · hardship · disproportionate · working-class

Opposites
distributive philosophy

flat taxesprogressive taxation

Rates increase with income

wealth taxes · luxury taxes · estate taxes · inheritance taxes · surtaxes

tax rate structure

flat taxesmarginal tax rates

Percentage owed per income tier

progressive taxation · tax brackets

Family

flat, tax, flats, flatly, flatten, flattened, flattening, flatness, flatter

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