Posted: Jul 31, 2014 12:37 pm
We already have a flat tax: VAT. VAT is regressive in its effect because the lower your income, the more of it you are likely to spend on consumption, and the greater the proportion of your income, therefore, that is taken from you in the form of VAT. We need progressive income tax rates merely to counter that effect and create a tax system that, in aggregate, is "flat".