Flat Taxes and Welfare Provision

The Daily Telegraph reports today ("Treasury blocks move to flat rate inflation") that the Treasury has blacked out several arguments in favour of introducing a "Flat Tax" (a single rate of tax across all income levels) in a report on the subject ("HM Treasury Freedom of Information Disclosure - Flat Taxes"). This is of course revealing of Gordon Brown's attitude to simplification of the tax regime (of which the Working Families tax credit fiasco is another good example). But the equation assumed by right-wing proponents of a Flat Tax (such as the Telegraph or George Osborne), namely that Flat Tax is synonymous with low tax, is equally revealing of their interest in the matter.