<human>:  How does a flat tax work?
<bot>: A flat tax is a tax system wherein everyone pays the same rate regardless of their income level. This is different than a progressive tax, where the rate increases based on income level. With a flat tax, everyone pays the same percentage rate of their income, making it a simple and straightforward system. This system can have different exemptions and deductions, allowing people with lower incomes to pay less due to qualifying deductions.