Some politicians have recently suggested changing the income tax system in the U.S. to a flat tax system where all taxpayers would pay the same percentage of their income in tax to the federal government. Explain how such a change can be analyzed in terms of efficiency. Do you believe that this tax will have equity effects as well?

Question

Quizplus · Accepted Answer

The Answer of Some politicians have recently suggested changing the income tax system in the U.S. to a flat tax system where all taxpayers would pay the same percentage of their income in tax to the federal government. Explain how such a change can be analyzed in terms of efficiency. Do you believe that this tax will have equity effects as well?

Some Politicians Have Recently Suggested Changing the Income Tax System