Advertisement
Advertisement
flat tax
- A single tax rate that applies to everyone obligated to pay the tax. Sales taxes are flat taxes. There have been proposals to substitute a flat tax on income for the current graduated tax, which taxes higher incomes at a higher rate. Proponents argue that the flat tax is fair and simple. Opponents view it as a bonanza for the wealthy.
Example Sentences
The 13% flat tax was put into effect in an attempt to discourage tax evaders and boost the state’s revenue.
A flat tax increase might be welcomed by FanDuel and DraftKings, the largest betting sites, which are better equipped than smaller rivals to afford the impact — “though they would never say that out loud,” Grove said.
“While I am neutral on the flat tax, I cannot continue down this path to failure,” said Republican Rep. Randy Garber, a northeast Kansas conservative, explaining his no vote.
In 2022, Iowa moved to a flat tax, initially set at 4.4% but scheduled to drop eventually to 3.9%.
A tax cut approved by legislators in 2021 and signed into law by Hobbs’ Republican predecessor, Gov. Doug Ducey, replaced the state’s graduated income tax with a flat tax that took full effect last year.
Advertisement
Advertisement
Advertisement
Advertisement
Browse