It is both, a progressive individual income tax coupled with a subtraction method VAT. As described by it's authors and many others as well.Interesting that none of your cut & pasties say that the flat tax is a "progressive individual income tax." You want to go down the list of cut & pasties till we get to one that does?
Interesting that none of your cut & pasties say that the flat tax is a "progressive individual income tax."
Seems you have a problem in reading comprehension along with your other little peccadilloes.
I once again present Robert Hall in describing the "Flat Tax" from the bible of the flat tax [ The Flat Tax; by Robert Hall and Alvin Rabushka] as extracted from comment #112:
You do realize, of course, that a progressive tax on one's wages paid by the worker, is indeed an individual progressive income tax, least it was the last time I took a look the current tax system as it taxed my wages.
The Flat Tax; Chapter 3, by Robert Hall and Alvin Rabushka
| In our system, all income is classified as either business income or wages (including salaries and retirement benefits). The system is airtight. Taxes on both types of income are equal. The wage tax has features to make the overall system progressive. Both taxes have postcard forms. The low tax rate of 19 percent is enough to match the revenue of the federal tax system as it existed in 1993, the last full year of data available as we write. Here is the logic of our system, stripped to basics: We want to tax consumption. The public does one of two things with its income—spends it or invests it. We can measure consumption as income minus investment. A really simple tax would just have each firm pay tax on the total amount of income generated by the firm less that firm’s investment in plant and equipment. The value-added tax works just that way. But a value-added tax is unfair because it is not progressive. That’s why we break the tax in two. The firm pays tax on all the income generated at the firm except the income paid to its workers. The workers pay tax on what they earn, and the tax they pay is progressive. |
Don't worry about it since the flat tax being discussed is not your (nonexistent theoretical) Nightmare Flat tax anyway.