![]() ![]() Notwithstanding any such relationship, no responsibility is accepted for the conduct of any third party nor the content or functionality of their websites or applications. We may receive financial compensation from these third parties. Please be aware that some of the links on this site will direct you to the websites of third parties, some of whom are marketing affiliates and/or business partners of this site and/or its owners, operators and affiliates. Critics of the approach believe a flat tax unfairly shifts a burden to those of the middle class and benefits higher income individuals. Others argue a flat tax is simpler to implement and avoids the confusion associated with progressive tax codes. Proponents of a flat tax believe it spurs economic growth by removing the progressive tax's disincentive to earn more income. For example, the Social Security portion of FICA is a capped flat tax. A modified flat tax allows for certain deductions such as home mortgage payments, while a capped flat tax applies until a certain income limit is reached. There are a number of variations of the flat tax. ![]() A true flat tax does not provide for deductions, which allows certain taxpayers to avoid paying taxes on a significant portion of their income. ![]() The federal income tax system in the United States is a progressive tax, while some states claim to have a flat income tax. Unlike a progressive tax, which increases the burden as income increases, a flat tax has one rate which applies regardless of the taxpayer's income. ![]()
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