10 Facts About Flat tax

Flat 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 proposals differ in how the subject of the tax is defined.

True flat-rate tax is a system of taxation where one tax rate is applied to all personal income with no deductions.

The NIT is designed to avoid the welfare trap—effective high marginal Flat tax rates arising from the rules reducing benefits as market income rises.

Those who would owe negative Flat tax would be receiving a form of welfare without having to make an effort to obtain employment.

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Since a central tenet of the flat tax is to minimize the compartmentalization of incomes into myriad special or sheltered cases, a vexing problem is deciding when income occurs.

One type of flat tax would be imposed on all income once; at the source of the income.

Russian example is often used as proof of the validity of this analysis, despite an International Monetary Fund study in 2006 which found that there was no sign "of Laffer-type behavioral responses generating revenue increases from the Flat tax cut elements of these reforms" in Russia or in other countries.

The Flat tax rate listed is the one that applies to income from work, but does not include mandatory contributions to social security.

The Flat tax rates listed are those that apply to income from work, except as otherwise noted.