A report on Flat tax
Tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.
- Flat tax16 related topics with Alpha
Tax
5 linksCompulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.
Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.
Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes are progressive based on brackets of annual income amounts.
Proportional tax
3 linksTax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.
Tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.
Flat taxes are defined as levying a fixed (“flat”) fraction of taxable income.
Progressive tax
3 linksTax in which the tax rate increases as the taxable amount increases.
Tax in which the tax rate increases as the taxable amount increases.
The act was signed into law by President Abraham Lincoln, and replaced the Revenue Act of 1861, which had imposed a flat income tax of 3% on incomes above $800.
Tax rate
3 linksRatio at which a business or person is taxed.
Ratio at which a business or person is taxed.
With a flat tax, by comparison, all income is taxed at the same percentage, regardless of amount.
Consumption tax
2 linksTax levied on consumption spending on goods and services.
Tax levied on consumption spending on goods and services.
A direct consumption tax may be called an expenditure tax, a cash-flow tax, or a consumed-income tax and can be flat or progressive.
Value-added tax
2 linksType of tax that is assessed incrementally.
Type of tax that is assessed incrementally.
A VAT is usually a flat tax.
Income tax
2 linksTax imposed on individuals or entities in respect of the income or profits earned by them (commonly called taxable income).
Tax imposed on individuals or entities in respect of the income or profits earned by them (commonly called taxable income).
The tax systems vary greatly and can be progressive, proportional, or regressive, depending on the type of tax.
Robert Hall (economist)
1 linksAmerican economist and a Robert and Carole McNeil Senior Fellow at Stanford University's Hoover Institution.
American economist and a Robert and Carole McNeil Senior Fellow at Stanford University's Hoover Institution.
Hall is perhaps most famous for co-originating the flat tax with Alvin Rabushka. They co-authored a book with the same name. The two often act as advisors to countries in Eastern Europe that wish to adopt the flat tax.
Capitalism and Freedom
1 linksBook by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society.
Book by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society.
Friedman examines the progressive income tax, introduced in order to redistribute income to make things more fair, and finds that, in fact, the rich take advantage of numerous loopholes, nullifying the redistributive effects. It would be far more fair just to have a uniform flat tax with no deductions, which could meet the 1962 tax revenues with a rate only slightly greater than the lowest tax bracket at that time.
Milton Friedman
1 linksAmerican economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy.
American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy.
A prime element of Laar's program was introduction of the flat tax.