Flat tax critics

Question

Flat tax critics

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Critics argue that a flat tax would create additional inequalities, as those with higher incomes would still pay a lower percentage of their income in taxes than those with lower incomes. This would also potentially worsen vertical inequities, as those with more wealth would still have more resources to take advantage of any tax loopholes or deductions. Additionally, a flat tax could limit the government's ability to alter the mix of output, as it would create a fixed revenue stream that may not be flexible enough to respond to changing economic conditions.

Flat Tax Critics