Flat Tax: European Experiences and the Italian Proposals

Abstract

The paper discusses the flat tax, intended as a potential comprehensive reform of personal income tax. After a presentation of the broad characteristics of the flat tax model, we extensively describe the ap¬plications of this model that have taken place so far in some countries and its impact on financial and economic indicators. The last part of the paper focuses on the Italian case, assessing the possible dis¬tributional effects of the application on Italian households’ incomes of some recently presented flat tax reform proposals.