A flat tax system, in which everyone pays at the same rate regardless of income and would eliminate deductions, would make more money for the government, but progressive taxation, where wealthier people are taxed at higher rates, would make people happier, says a new study..
The new study comparing 54 nations found that flattening the tax risks flattening social wellbeing as well. "The more progressive the tax policy is, the happier the citizens are," says University of Virginia psychologist Shigehiro Oishi, summarizing the findings in Psychological Science.