An example of a flat tax is the income tax system in countries like Estonia, where all taxpayers pay a single fixed percentage (e.g., 20%) of their annual income, regardless of how much they earn. This is considered a flat tax because it applies the same tax rate uniformly across all income levels, rather than using a progressive structure where higher earners pay higher rates.
In one to two sentences, describe an example where people pay a flat tax and explain why it is a flat tax. (2 points)
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