Recent Examples of flat tax from the Web
Reuters Italy Tax The parties negotiating a potential governing coalition in Italy may introduce a flat tax rate in the country of 15%, or 20% for families earning more than $96,000 a year.
Those include Salvini’s flat tax and Di Maio’s pledge to offer a basic income to citizens without income or whose income is too low.
In Alaska, a flat tax of $50 per ounce is levied on bud, and $15 per ounce levied on trim, although some argue that the tax structure should be changed.
The government has ended the wealth tax, and put a flat tax on financial income.
Some states charge no income tax, but among those that do, Illinois is one of a few that has a flat tax.
His mixed economic record in office and his implausible campaign promises of more spending and a flat tax (which can’t pass) gave voters little else to go on.
While offering Italian citizenship to children born to immigrants is a no-go, the two groups could find common ground on the League’s proposals for a flat tax, job-creation measures and welfare reform, one of the officials said.
At the moment, the state constitution mandates a flat tax, meaning all people, regardless of income, pay the same: 4.95 percent.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'flat tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of FLAT TAX
What It Is
How It Works
Let's assume that you had $100,000 of taxable income last year. Under a progressive tax system, you might be taxed 0% on the first $25,000, 10% on the next $50,000, and 30% on the remaing $25,000, for a total tax bill of (0 x $25,000) + (0.10 x $50,000) + (0.30 x $25,000) = $12,500. Under a flat-tax system, you might instead simply owe, say, 15% of your taxable income, or $15,000.
Why It Matters
The concept of a flat tax is controversial, and many economists and politicians have introduced many different twists and forms of the idea. In many proposals, the flat tax would not apply at all to incomes below a certain amount.
Supporters say flat taxes incent people to work harder, earn more, and engage in wealth-creating activities because the current progressive system penalizes people who make more money (by putting them in higher tax brackets and thus taxing that incremental income at a higher rate). In this vein, supporters say a progressive tax system does not encourage entrepreneurship. Supporters also say the current tax system is too complicated, and that the system of credits, deductions, exemptions, etc. offers too many loopholes with which to take advantage of the system.
The notion of whether the flat tax is "more fair" is perhaps the most controversial aspect of the idea. Under the system, a person with 100 times more income would pay 100 times more in taxes, but that person would be paying the same percentage of his income in taxes as a low-income person would pay.
Seen and Heard
What made you want to look up flat tax? Please tell us where you read or heard it (including the quote, if possible).