Which statement is TRUE?
After all the deductions, exemptions, loopholes, and so forth, the U.S. tax system is regressive.
Proponents of a flat tax argue that it would encourage people to make investment, consumption, and work decisions for good economic reasons rather than merely to reduce tax payments.
A flat tax has higher tax rates on people with lower incomes.
The advantage of a flat tax is that moving to a flat tax would require raising rates on high income individuals and lowering rates on middle and low income individuals.