Some European countries, especially in Eastern Europe, for example the Czech Republic and Slovakia, recently introduced a ‘flat tax’ system. Furthermore in other European countries like Germany and Switzerland there are controversial discussions about introducing a flat rate tax system.
The aim of this essay is to analyse a flat rate tax system and to try to figure out if a flat rate tax system is indeed inferior to a progressive tax rate system with respect to justice in taxation.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Justice in taxation
- The Flat Rate Tax
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This essay examines the fairness of a flat rate tax system compared to a progressive tax rate system. It analyzes the effects of both systems on justice in taxation and aims to determine whether a flat rate tax is indeed inferior to a progressive tax.
- Ability to pay
- Horizontal equity
- Vertical equity
- Marginal and average tax rates
- Redistribution of wealth
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the concept of a flat rate tax system, highlighting its implementation in some European countries. It contrasts the flat rate tax with a progressive tax system, emphasizing the differences in tax burden based on income.
- Justice in taxation: This chapter outlines the key principles of a fair tax system, focusing on the ability to pay, horizontal equity, and vertical equity. It discusses the importance of considering both economic capabilities and individual endowments when determining tax burdens.
Schlüsselwörter (Keywords)
This essay focuses on the concept of a flat rate tax system, contrasting it with a progressive tax system. Key themes include justice in taxation, ability to pay, horizontal and vertical equity, marginal and average tax rates, and redistribution of wealth. It explores the implications of both systems on fairness and economic consequences.
- Quote paper
- Beate Neubauer (Author), 2009, Flat Tax - an unfair system of taxation?, Munich, GRIN Verlag, https://www.grin.com/document/145137
