Question

How is sales tax similar to a flat tax?

They are both direct taxes

They are both indirect taxes

They are both the same rate for everyone

They both change according to income

Answer 1

Sales taxes and flat taxes are similar in that both of them charge the same tax rate for everyone. A sales tax is levied when you purchase a retail good and it is a fixed percentage of the price of the goods bought. An example of a flat tax is the payroll tax which is 12.4% regardless on the salary paid.

Answer 2

A flat tax is a tax system that taxes income at a single fixed rate regardless of an individual income level, meaning that all taxpayers pay the same tax rate on their income.This tax is applied upon consumers at the point of sale for goods and services.
sale tax is a tax imposed on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the seller