A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.- Flat tax
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.- Tax
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Progressive tax2 links
A progressive tax is a 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 rate2 links
In a tax system, the tax rate is the ratio (usually expressed as a percentage) 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.
Proportional tax1 links
A proportional tax is a 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.
Income tax1 links
An income tax is a tax imposed on individuals or entities (taxpayers) 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.
Value-added tax0 links
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally.
A VAT is usually a flat tax.