Question

How is sales tax similar to a flat tax?

Answer 1

The answer is "They are both the same rate for everyone"

I took the test and got it right

Answer 2

Sales tax and Flat tax are similar in the sense that they both will be having the same rate. The Flat tax is applied and deducted from the income source directly, but the Sales tax is deducted whenever a person goes to buy something. The percentage of taxation remains the same. In principle there is do difference between the sales tax and the flat tax. Only difference lies in the way of collecting the taxes and the place of submitting the taxes. The flat tax is collected by the seller of the goods and then the seller pays the collected tax to the government. The target is to reduce the discrimination of taxation and bringing equal taxation for all living in the country.