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Flat tax and dual tax are alternative models for traditional global income taxes with progressive rates. Although there are significant differences between them, a dual tax characterised by a general base, where all income is taxed at a proportional rate, and a personal base, composed only of labour income and taxed according to a progressive schedule that includes a wide zero-rate bracket, could be deemed a flat tax with a surtax on high labour income. A microsimulation exercise applied to Spain confirms that under equal-yield assumption most individuals would only be taxed on the general base, in the same way as a flat tax. The personal base increases progressivity and redistributive effect.
