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Economics - Financial Markets 22 Online
OpenStudy (anonymous):

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

OpenStudy (anonymous):

@PRAETORIAN.10

OpenStudy (anonymous):

:)) <3

OpenStudy (praetorian.10):

well, a sales tax is pretty much a consumption tax levied on services and goods purchased at retail level, paid by the consumer (obviously) and submitted by the retailer to the governing tax authority.

OpenStudy (anonymous):

so indirect?

OpenStudy (anonymous):

because the retailer has to send it in?

OpenStudy (praetorian.10):

now a flat tax is simply a system of tax wherein a constant marginal rate occurs. this kind of tax is most commonly applied to individual or conglomerate incomes. this type of tax is a proportional tax (seeing as they allow certain deductions).

OpenStudy (praetorian.10):

so i would postulate that....

OpenStudy (anonymous):

so flat tax is proportional? Im sorry i don't exactly understand the wording :/

OpenStudy (anonymous):

i say indirect but i could be wrong

OpenStudy (praetorian.10):

i concur. to say that both are indirect is the most apt choice.

OpenStudy (praetorian.10):

cool-cool?

OpenStudy (anonymous):

thank you again, a life saver as always

OpenStudy (praetorian.10):

one tries ones best

OpenStudy (praetorian.10):

besides, you knew the answer innately

OpenStudy (praetorian.10):

it is you who ought to be congratulated

OpenStudy (anonymous):

haha thanks :) don't be shocked if i ask another question though

OpenStudy (praetorian.10):

being confounded is not a propensity of mine.

OpenStudy (anonymous):

sorry i guess

OpenStudy (praetorian.10):

you need not apologise. i took no offense.

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