A national flat tax involves all taxpayers paying the same percentage of income, contrasting with a regressive income tax system that disproportionately affects lower-income individuals.
A national flat tax is a tax system where all taxpayers pay the same percentage of their income regardless of income level, unlike a progressive tax system where higher-income individuals pay a higher percentage. In contrast to a more regressive income tax system that would disproportionately burden lower-income individuals, a national flat tax would result in everyone paying the same percentage of their income in taxes.
For example, under a flat tax rate of 10%, both an individual making [tex]$40,000 and another making $[/tex]1,000,000 would pay [tex]$4,000 and $[/tex]100,000 in taxes, respectively. This type of tax structure could impact different income groups in varying ways, influencing debates on the fairness and effectiveness of tax policies.
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