Question

what is the impact of the flat tax?

Answer 1

Followings will be the common impact of flat tax;

1. Main positive impact of the flat tax is its simplicity. In other words we can say that flat tax will remove various types of taxation complexities because under flat tax system, it applies the same low rate across the board.

2. Flat tax will bring more fairness in the taxation system in the country because current tax system requires a lot of interpretation and we know that as much higher the interpretation in taxation system then there will be higher degree of unfairness that is why flat tax system will result into higher fairness.

3. Flat tax system will lead to faster economic growth due to increased work, saving and investment.

4. Flat tax system will also boost the economy's long-term growth rate.

5. Flat tax will result into instant wealth creation because due to flat tax there will be higher after tax income in hands that is why it will lead to instant wealth creation.

6. Citizens will not be discriminated on the basis of income due to flat tax.

7. Flat tax system also lead to higher degree of civil liberty due to low conflict between government and tax payers.

8. Tax system will be managed much easier due to decreased number of tax deductions and exemptions.

9. It will also improve global competitiveness of the firms & companies of the country due to simple tax strucuture etc.