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Posts Tagged ‘flat tax’

Income tax

Some politicians talk about a flat income tax (U.S. Republican presidential candidate Steve Forbes in 1996 and 2000), and some claim to have implemented such a tax (the Canadian province of Alberta in 2001).

Nearly all, if not all, so-called flat income taxes proposed by politicians and implemented by various states, are not flat.

They say it’s a flat tax because it only has one tax rate, but that’s not true. In 2011, Alberta has a basic personal income tax exemption of $16,977 CAD.

Therefore, Alberta has two tax rates. 0% if you make between $0 and $16,977, and 10% on whatever you make in excess of that.

The only truly flat personal income taxes are to be found wherever there are no personal income taxes, such as Texas, Florida and the state of Washington.

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