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Lessons from the Flat Tax

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Published February 22. 2022

In the 1980s, simplifying America’s tax code provided better incentives to work, save, and invest. Wanting to go even further, Alvin Rabushka and Bob Hall proposed a flat tax. Though it was not adopted in America, countries that have implemented the flat tax have seen less tax avoidance and more tax revenue.

Discussion Questions

  1. Could a flat tax work in America?
  2. Why does a simplified tax code provide better incentives to work, save, and invest?

Additional Resources

  • Read Alvin Rabushka and Robert Hall’s book The Flat Tax free. Available here.
  • Watch “What We Learned About 70% Tax Rates 50 Years Ago” on PolicyEd. Available here.
  • Watch “Why Tax Rates Matter More than Taxes” on PolicyEd. Available here.