A number of conservative politicians and economists advocate replacing the progressive income tax with a flat tax

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A number of conservative politicians and economists advocate replacing the progressive income tax with a "flat tax" that would apply the same, low tax rate to all income above a certain exempt amount. One argument against making this change is that the distribution of income has grown much more unequal since the 1970s. Does the evidence support that view? Is it a decisive argument against a flat tax? How is the trade-off between equality and efficiency involved here?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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