describe how moving to a flat-rate tax will help raise the standard of living.

Expert Solution

The flat tax system refers to same tax rate for all irrespective of income level. Flat tax system eliminate the discriminatory practises of traditional tax systems. The flat tax system lowers tax rate and favours more savings and investment and finally leads to better economic performances.
The flat tax system provides incentives for production and treats everyone equally. Thus it raises the standard of living of citizens through enhances production opportunities. The higher tax bracket citizens are not taxed heavily, so that they can save and invest more in the economy. The flat tax system are likely to raise and increase employment and labor supply.

Rahul Sunny answered 2 years ago

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