Ritchie reads a paper on the outcome of the Romanian flat tax.
It’s not a surprising finding – but it’s good to have it confirmed that flat taxes are unambiguously regressive.
What a glorious statement.
One flat tax in one country is regressive compared to the previous tax system in that country. Therefore all flat taxes in all countries are regressive compared to all other tax systems.
Just for the avoidance of doubt here, let us offer a small model.
Take the current UK tax system.
Now replace it with a flat tax (of, oooh, say, 50%) and a £22,500 personal allowance (roughly the median wage).
It would be very difficult indeed to state that the latter is regressive in any manner at all: especially as it would be vastly more progressive than the current system.