Is the Flat Tax Regressive ?

[tradeunionsupporter]

Is the Flat Tax unfair because a Rich/Wealthy Person will have have more money left after he pays the Flat Tax Rate of 18% while a Middle Class Person will have less money left after he pays the Flat Tax Rate of 18% ?

http://debatepedia.idebate.org/en/index.php/Debate:_Progressive_tax_vs._flat_tax

[Caj]

It's certainly unfair, but I wouldn't refer to it as "regressive."

[The Jay]

The percentage of the poor's after tax income on necessities is much higher than the rich's. That is why it is unfair and for that reason I would call a flat tax regressive.

[RichardAWilson]

I think the Flat-Tax is neutral (I.e. It does include an embedded rebate that would benefit lower income households). With that said, the Flat-Tax isn't a progressive tax. (I.e. Members of the working middle class would be subjected to an effective tax rate that is equal to millionaires).

If the Payroll Tax remained after the Flat-Tax was legislated into law, the overall tax system would be regressive.

[ComradeMan]

What exactly is the proposal in the US?

[RGacky3]

It depends, usually it ends up being regressive, due to hte fact that the rich can find loopholes and the such, and because other taxes (such as sales tax and other consuption taxes).

Strictly however, its neutral.