Flat Tax
A flat tax is a tax system where everyone pays the same percentage of their income, regardless of how much they earn. This means that whether someone makes $30,000 or $300,000, they would pay the same tax rate. Proponents argue that it simplifies the tax code and makes it fairer, as everyone contributes equally based on their earnings.
Critics of the flat tax system often point out that it can disproportionately affect lower-income individuals, as they may pay a higher percentage of their income compared to wealthier individuals. Additionally, a flat tax may reduce government revenue, impacting funding for public services like education and healthcare.