The Hall–Rabushka flat tax is a

flat tax A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base. It is not necessarily a fully proportional tax. Implementations are often progressiv ...

proposal on consumption designed by American economists Robert Hall and

Alvin Rabushka Alvin Rabushka (born May 15, 1940) is an American political scientist. He is a David and Joan Traitel Senior Fellow at the Hoover Institution at Stanford University, and member of the Mont Pelerin Society. He is best known for his work on taxation ...

at the

Hoover Institution The Hoover Institution (officially The Hoover Institution on War, Revolution, and Peace; abbreviated as Hoover) is an American public policy think tank and research institution that promotes personal and economic liberty, free enterprise, and ...

. The Hall–Rabushka flat tax involves taxing income but excluding

investment Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing i ...

. The Hall–Rabushka flat tax may include an exemption, which allows the tax to preserve progressivity. In the United States, extensive tax reform has not taken place since the Tax Reform Act of 1986, and like other tax reform, the flat tax has not advanced far in the US political process. However,

Eastern Bloc The Eastern Bloc, also known as the Communist Bloc and the Soviet Bloc, was the group of socialist states of Central and Eastern Europe, East Asia, Southeast Asia, Africa, and Latin America under the influence of the Soviet Union that existed du ...

countries have generally embraced the flat tax after

the fall of the Iron Curtain The Revolutions of 1989, also known as the Fall of Communism, was a revolutionary wave that resulted in the end of most communist states in the world. Sometimes this revolutionary wave is also called the Fall of Nations or the Autumn of Natio ...

. Hall and Rabushka have consulted extensively in designing flat taxes. Carly Fiorina threw her public support in 2015 behind a 3-page tax plan that is largely based on this tax plan.

CNN Money CNN Business (formerly CNN Money) is a financial news and information website, operated by CNN. The website was originally formed as a joint venture between CNN.com and Time Warner's ''Fortune'' and ''Money'' magazines. Since the spin-off of Time ...

believes that Fiorina's plan will include a 19% flat tax for individuals and businesses' operating incomes.CNNMoney (New York
"Carly Fiorina wants a 3-page tax code"
CNN Money, 2015i

References

Tax reform {{tax-stub

See also

References