Flat Tax - an unfair system of taxation?

Essay , 2009 , 12 Pages , Grade: 1,7

Philosophy - Practical (Ethics, Aesthetics, Culture, Nature, Right, ...)

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 aims to analyze a flat rate tax system and compare its effects to those of a progressive tax system. It explores the concept of justice in taxation, specifically focusing on the criteria of ability to pay, horizontal equity, and vertical equity. The goal is to determine whether a flat rate tax is inferior to a progressive tax from a justice perspective.

• Justice in taxation
• Ability to pay
• Horizontal and vertical equity
• Flat rate tax system vs. progressive tax system
• Impact of taxation on income distribution and utility

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter introduces the concept of a flat rate tax system and its application in some European countries. It contrasts the flat rate tax with a progressive tax system, highlighting their differences in marginal and average tax rates.
• Justice in taxation: This chapter defines the criteria for a just system of taxation, emphasizing the principles of ability to pay, horizontal equity, and vertical equity. It discusses the importance of considering economic capabilities and endowment when determining tax burdens.
• The Flat Rate Tax: This chapter delves into the analysis of a flat rate tax system, examining its impact on income distribution, utility, and the concept of justice in taxation. It compares the flat rate system to a progressive system, considering their respective advantages and disadvantages.

Schlüsselwörter (Keywords)

The key terms and concepts explored in this text include flat rate tax, progressive tax, justice in taxation, ability to pay, horizontal equity, vertical equity, income distribution, utility, marginal tax rate, average tax rate, and tax burden.

• College: University of Bayreuth
• Grade: 1,7
• Author: Beate Neubauer (Author)
• Publication Year: 2009
• Pages: 12
• Catalog Number: V145137
• ISBN (eBook): 9783640565702
• ISBN (Book): 9783640566174
• Language: English
• Tags: Steuergerechtigkeit, Flat Tax Vs. Progressive Tax, Flat Tax