The concept of a "flat tax." Can you please explain to me how this tax scheme works and does it meet the criteria of tax efficiency and tax fairness/equity?© BrainMass Inc. brainmass.com October 9, 2019, 8:43 pm ad1c9bdddf
An efficient tax would meet these criteria, as set forth by Adam Smith:
-Certainty (the amount, time and place of payment is certain);
-Collection that is convenient and cheap.
A flat tax would meet these criteria. A flat tax is simply a straight percentage of your income, without regard to how much you make. Sales taxes are a good example of this type of taxation.
This solution provides an assessment of the concept of a flat tax in terms of fairness and equity.