What is a flat tax?

Question

What is a flat tax?

Quizplus · Accepted Answer

A flat tax is a tax where every taxpayer pays the same percentage of her income. If you had a flat tax of, say, 20%, every taxpayer would pay 20% of their income in taxes, no matter how much they made. The person who made $10,000 would pay $2000 and the person who made $100,000 would pay $20,000. There aren't really any flat taxes in the United States. The closest is the Social Security tax because it has a flat tax up to $110,000 of income, but then there are not taxes on income above that. It isn't really flat because someone who made $500,000 would pay the same amount of Social Security taxes as someone who made $110,000.

What Is a Flat Tax