Secret of the Flat Tax: Middle Class Pays More So Rich Pay Less

By Dean Baker

With Herman Cain soaring to the top of the Republican pack on the basis of his 9-9-9 plan, a flat tax is once again at the center of public debate. Texas Gov. Rick Perry, and some days Mitt Romney, are always spouting the virtues of a tax system that is "simpler, flatter, and fairer."

While simplicity is generally desirable in a tax code, it has nothing to do with the tax code being flat. And being flat would be the opposite of being fair, unless people think it is unfair that they don't pay more taxes.


Confusing a simple tax code with a flat tax is a cheap political stunt. The number of tax brackets doesn't affect simplicity at all. Regardless of the number of brackets, there is only one calculation needed. The instruction is simple. It looks like this: "pay $1,000, plus 15 percent of income above $50,000." You can have a flat tax or 100 tax brackets, it is the same formula. Even a Republican presidential candidate can figure it out.