Hoover Daily Report
Analysis and Commentary
Analysis and Commentary

Could a Degressive Tax Be Better Than a Flat Tax?

by Alvin Rabushkavia Hoover Daily Report
Monday, October 20, 2003

I have argued that disincentives to work, save, and invest should be removed via a flat tax. But why not go a step further and improve incentives across the board by creating a degressive tax? Such an experiment is about to take place in Switzerland.