Question

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

Answer 1

Example: a country charges a 12% income tax so someone earning $30,000 pays $3,600 and someone earning $300,000 pays $36,000. It's a flat tax because every taxpayer pays the same constant percentage of their income, with no progressive brackets or different rates by income level.