A flat tax

Question

A flat tax

Quizplus · Accepted Answer

A flat tax typically involves a single tax rate applied uniformly to all taxpayers regardless of income level, thus reducing the government's ability to alter the mix of output. It does not encourage economic activity through deductions and credits (as those are typically not included in a flat tax system) and does not necessarily include many tax brackets. While it may eliminate some vertical inequities, it does not completely eliminate all potential vertical inequities as some individuals may still be able to take advantage of loopholes or deductions.

A Flat Tax