Economics 12th Edition by William Baumol, Alan S Blinder

Exercise 2

A number of conservative politicians and economists advocate replacing the progressive income tax with a "flat tax" that would apply the same, low tax rate to all income above a certain exempt amount. One argument against making this change is that the distribution of income has grown much more unequal since the 1970s. Does the evidence support that view Is it a decisive argument against a flat tax How is the trade-off between equality and efficiency involved here