Fixed tax

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A fixed tax is a lump sum tax that is not measured as a percentage of the tax base (income, wealth, or consumption). Fixed taxes like a poll tax or sin tax are often considered regressive, but could have progressive effects if applied to luxury goods and services.

Since citizens share common roads, military protection, policing, and other government services, some argue that citizens should pay the same amount for basic infrastructure. Fixed taxation removes the moral dilemma of two individuals having to pay significantly different amounts in order to receive the same services, which could be argued as discrimination against economic success.

It is argued that a fixed tax can save on tax compliance costs and improves privacy. Unlike proportional taxes, a fixed tax does not necessitate public insight, i.e. government would not need to know individual income, wealth, or consumption.