Flat Tax

A flat tax is a tax system where everyone pays the same percentage of their income, regardless of how much they earn. For example, if the flat tax rate is 10%, both someone earning $50,000 and someone earning $500,000 pay 10% of their income in taxes. It simplifies the tax code, making calculations straightforward and transparent. Advocates argue it promotes fairness and efficiency, while critics say it may disproportionately benefit higher earners and reduce government revenue needed for public services.