Glossary Item

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Flat Tax

A tax in which as income increases above an agreed tax free sum the amount of tax paid remains constant in proportion to total income.

Compare with progressive taxes.

The term is usually only applied to income taxes.

Widely considered to be unethical because the marginal capacity to pay such a tax is smaller amongst those with lower income than it is amongst those with higher income.

Proponents of flat taxes always appear to be associated with right wing political thinking.


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