Flat tax

A flat tax, also called a proportional tax, is a system that taxes all entities in a class (typically either citizens or corporations) at the same rate (as a proportion of income), as opposed to a graduated, or progressive, scheme. The term flat tax is most often discussed in the context of income taxes. The flat tax is not used in many developed countries on a national level, standing in contrast to the more widely used progressive income tax, in which citizens and corporations with higher incomes pay tax at a higher rate than those with lower income.

Related Topics:
Taxes - Citizen - Corporation - Graduated - Income taxes - Progressive income tax

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