How do lump-sum taxes, which are fixed amounts paid by taxpayers, influence taxpayer behavior compared to progressive tax systems that charge higher rates on increased income?

Lump-sum taxes are fixed amounts that everyone pays, regardless of their income level. This means that whether someone earns a little or a lot, they pay the same set amount. Because of this, lump-sum taxes do not change based on how much money a person makes, so they do not discourage people from earning more money. In contrast, progressive tax systems increase the tax rate as a person's income grows, which can make high earners think twice about taking on extra work or investments because they will pay more in taxes. For example, if someone earns $50,000 and pays a lump-sum tax of $1,000, they will still pay that same $1,000 even if they earn $60,000, making them more likely to pursue additional income without worrying about higher taxes.