The distortions created by income taxes could be minimized by changing the progressive tax system to a flat tax system.

Question

Quizplus · Accepted Answer

A progressive tax system creates disincentives for individuals to earn more income, as they will face higher tax rates. This can lead to reduced work effort and investments. On the other hand, a flat tax system applies the same tax rate to all taxpayers, regardless of income level, thus minimizing the disincentives caused by progressive tax rates.

The Distortions Created by Income Taxes Could Be Minimized by Changing