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How is sales tax similar to a flat tax?

Dana Keller

in Business

1 answer

1 answer

Annie Barnes on May 16, 2018

Sales tax and income tax are similar in the sense that both are going to have the same speed. The tax applies and will be deducted from the income directly to the source, but the Sales tax will be deducted when a person goes to buy something. The percentage of tax remains the same. In principle is not making the difference between the sales tax and the flat tax. The only difference is in the way of collecting the taxes and the place of filing of the taxes. The tax is collected by the seller of the goods and, then, the seller pays the tax collected to the government. The goal is to reduce the discrimination in taxation and to bring the equality of taxes for all who live in the country.

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