the problem is that it's very hard to design a true flat tax system. corporations have to make deductions, but different industries need to deduct different le

the problem is that it's very hard to design a true flat tax system. corporations have to make deductions, but different industries need to deduct different levels of expenses. thus you still end up with (somewhat) progressive tax system: http://en.wikipedia.org/wiki/Flat_tax#Avoiding_deductions http://en.wikipedia.org/wiki/Flat_tax#Avoiding_deductions another issue which I think previous poster raises, is that it might seem unfair that person below poverty line pays the same tax rate as billionaire. So here in Estonia we make basic income (something that will keep you just above poverty line) tax-free (also everyone pays the same VAT on purchased goods, but obviously poor pay proportionally more in VAT than rich). But that means that it's not a true flat tax system (even though politicians like to claim it is)! Then the question becomes why shouldn't we have progressive tax if we don't have true flat tax system in the first place?