what a flat tax is not, a quibble for the day

Topics: Taxes
31 Oct 2005

From: Ervan Darnell

I have heard several people refer to the AMT as a flat tax, typically
pro-tax liberals who are trying to lodge a hypocrisy charge against
conservatives, but also people who honestly believe it.

"flat tax" does not mean merely a flat rate (not that the AMT is that in
any case), it means revenue neutral and a flat(er) rate. If one
proposes total confiscation, i.e. a uniform 100% tax, liberals will be
in favor of a flat tax. And, obviously, libertarians are all in favor
of a (near) 0% flat tax. Neither of those are honestly described as a
flat tax. The AMT as a big tax increase (with bracket creep) is not by
any means a "flat tax".

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