Definition of Flat Tax

What is a flat tax? What is the definition of the term flat tax? What does the term flat tax mean?

A flat tax system is one that sees all of the citizens of a country paying the same income tax rate, regardless of whether they are earning $10,000 a year or $1,000,000 a year. This is different from the traditional progressive tax systems in which people enter higher tax brackets if they earn more money.

Proponents of flat tax systems contend that they are simple to implement and operate, and that they don't unjustly punish successful people.

A number of countries throughout the world currently use a flat tax system. When Vladimir Putin was elected President of Russia, one of his first acts was to introduce a 13% flat tax system in the country. The results were immediate, as Russia's tax revenues soared by approximately 50%.

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