In one to two sentences, describe an example where people pay a flat tax and explain why it is a flat tax.(2 points)

Answer 1

An example of a flat tax is the income tax system in Estonia, where individuals pay a single fixed percentage (e.g., 20%) on their income regardless of how much they earn. This is considered a flat tax because it applies the same rate to all taxpayers, contrasting with progressive tax systems that impose higher rates on higher income brackets.