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Taxes

Flat Tax

Also called: flat rate tax, single rate tax

A flat tax applies one rate to all income, usually paired with a large exempt allowance. That allowance is what makes real-world flat taxes mildly progressive in effective terms even though the marginal rate is constant. Proponents argue for simplicity and neutrality; critics note that most complexity in tax codes comes from defining income and deductions, not from the number of brackets.

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