flat tax: Definition from Answers.com

Financial & Investment Dictionary: Flat Tax (abbr. for Flat rate tax)

Tax applied at the same rate to all levels of income. It is often discussed as an alternative to the Progressive Tax. Proponents of a flat tax argue that people able to retain larger portions of higher income would have an added incentive to earn, thus stimulating the economy. Advocates also note its simplicity. Opponents argue it is a Regressive Tax in effect, comparing it to the sales tax, a uniform tax that puts a greater burden on households with lower incomes. The Tax Reform Act of 1986 instituted a modified flat tax system-a progressive tax with fewer tax brackets and lower rates. However, the trend towards a flat tax was reversed with the Revenue Reconciliation Act of 1993 which added another tax bracket and a tax surcharge to the income tax system. See also Consumption Tax.

flat tax: Definition from Answers.com