Which type of tax involves uniform tax rates regardless of income levels?

A flat tax is characterized by its uniform tax rate applied to individuals or entities regardless of their income levels. This means that all taxpayers pay the same percentage of their income in taxes, making it straightforward and easy to understand. For instance, if the flat tax rate is set at 20%, then individuals earning $30,000 will pay $6,000, and individuals earning $100,000 will pay $20,000. This system contrasts with other types of taxes, where tax rates change depending on the income level.

In the context of progressive tax systems, the tax rate increases as the income level rises, which is aimed at reducing income inequality by placing a heavier burden on those who can afford it more. Regressive taxes, on the other hand, take a larger percentage from lower-income earners compared to higher-income earners, thus placing a greater strain on those with less financial ability. The term "simplified tax" does not represent a standard tax category and may refer to efforts aimed at making the tax system easier to understand or comply with, but it lacks a specific definition related to tax rates.

Thus, the classification of a flat tax is important because it serves distinct economic objectives and impacts income distribution in a way that differs fundamentally from