Origins of flat tax reveal hidden regressive features in income system
The flat tax has been a popular idea for simplifying taxes, but debates often focus on whether taxes should redistribute wealth. In 1913, the income tax was introduced to balance out the regressive tariff tax, aiming for a proportional tax system. Even today, the income tax system is not very progressive due to other regressive taxes like payroll taxes. This balance may have been intentional from the start.