We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is a Fixed Tax?

Mary McMahon
Updated May 17, 2024
Our promise to you
WiseGeek is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At WiseGeek, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

A flat or fixed tax is a tax that remains the same for everyone, regardless of income and other factors, taking the form of a flat fee. Many nations use a mixture of fixed and progressive taxes, where people pay taxes on a scale depending on how much they make. For example, people may pay a progressive income tax, but a fixed tax on vehicle registration. There are costs and benefits to using a fixed tax, including concerns about the impacts of this system on people with low incomes.

Advocates for using a fixed tax believe it is more fair, because everyone pays the same amount to support public services like police, roads, and so forth. They also suggest that it encourages people to earn more money and contribute to the economy, as they do not need to worry about rising into higher tax brackets as their earnings increase, and will have more income to use to pay employees, spend on products and services, and so forth.

Some opponents think a fixed tax can take the form of a regressive tax, where people with low incomes bear a disproportionate share of taxes. They may have less disposable income, making a large flat fee particularly onerous, while wealthier people can afford to pay more. Balancing a fixed tax to keep it low enough for people to afford can cause governments to lose out on revenues from taxpayers who could pay more.

Charging a basic, fixed tax can ensure more privacy for citizens, as they do not need to provide declarations about income, spending, and other activities because they all pay the same amount in taxes. It can also be easier to administer. Governments with multiple tax systems may take advantage of the ease of a fixed tax for small, basic tax matters, preferring progressive taxes for things like income taxes.

To make changes in the tax code, governments need the approval of the legislature. Legislators typically request a fiscal review to determine the impact of proposed changes in tax policy and may take comments from tax officials, as well as members of the public to discuss various available options and alternatives. After careful evaluation, the government can pass legislation to change tax rates or other aspects of the tax code, specifying whether it is for a single year or is intended to act as a long-term change to the handling of taxation.

WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGeek researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Discussion Comments

Mary McMahon

Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.