1. Flat Income Tax
A single uniform rate on all earnings, with a generous exemption.
Example: 15% flat rate on incomes above $12 000.
Low earners pay nothing; everyone else pays the same rate.
2. Consumption Tax (VAT / NST)
Taxes applied to what people spend, not what they earn.
Example: 10% VAT on all final goods and services.
Basic groceries zero-rated to protect low-income families.
3. Wealth Tax
Annual levy on net assets above a set threshold.
Example: 1% per year on net worth above $5 million.
Assets assessed at market value annually.
4. Land Value Tax
Tax on unimproved land value, ignoring homes or buildings.
Example: 2% of assessed land value.
Encourages development and stops speculative land hoarding.
5. Carbon & Environmental Taxes
Levies on pollution or resource use to internalize external costs.
Example: $50/tonne CO₂ tax.
Revenue funds renewable energy projects.
6. Negative Income Tax / UBI
Guaranteed minimum income, phased out as earnings rise.
Example: $1 000/month grant per adult, reduced by 50¢ for each $1 earned.
Comparison Overview
| Model | Base | Rate Structure | Equity | Complexity |
|---|---|---|---|---|
| Flat Tax | Income | Single rate + exemption | Moderate | Low |
| Consumption Tax | Spending | Single rate | Regressive* | Medium |
| Wealth Tax | Net worth | Progressive tiers | High | High |
| Land Value Tax | Land only | Variable by value | Equitable | Medium |
| Carbon/Environmental | Emissions/use | Per-unit levy | Mixed | Medium |
| Negative Income Tax / UBI | Direct grants | Phased payments | High | High |
*Can be made progressive with rebates on essentials.
Sources & Further Reading
- OECD, Revenue Statistics 2024 – Consumption taxes and exemptions.
- Thomas Piketty, Capital in the Twenty-First Century (2014) – Wealth concentration data.
- Henry George, Progress and Poverty (1879) – Foundational Land Value Tax theory.
- Abba Lerner, The Economics of Functional Finance (1943) – Modern Monetary Theory concepts.
- Kela (Finland), Basic Income Experiment Report (2020) – UBI pilot outcomes.