The RGST or Reformed General Sales Tax has recently been enacted in Pakistan. A General Sales Tax or so-called Flat Tax is a tax applied to all (or most) items sold in a country, and often is used instead of, or to replace, a complicated system of varying taxes, tariffs, and surcharges placed on individual goods (Like U.S. taxes on liquor, cigarettes and gasoline, for example). A General Sales Tax that covers a broader range of goods (including foods, for example), can often be applied 'across the board' at a lower rate, yet still gain greater tax revenues. That is the theory in Pakistan, and for those proposing a U.S. Flat Tax. But a Flat Tax, in taxing such necessities as food and clothing, may fall much harder on the poor, who tend to spend a greater percentage of their income on such goods. Pakistan has enacted a 'Reformed' GST to replace an earlier version. Reportedly, its RGST of about 15% on most sales will replace a range of taxes and tariffs that varied from 17% to 25% on some goods, but will add a 15% tax to goods not previously taxed.
by Cindy Pierre 5 years ago
Could a flat tax work if it was implemented with exceptions?If a flat tax was implemented having exclusions like food, but a higher rate on luxury items would it work?
by Paul Swendson 7 years ago
I'm no economics expert, but I've noticed that people from all sides of the political spectrum don't like the American tax code. Republicans always want to cut taxes, and Democrats want to close loopholes.It also seems to me that taxes on both businesses and individuals could be lowered if the...
by Peter Grant 7 years ago
The Congressional Budget Office's latest numbers show that the wealthiest 10 percent of Americans pay about 70 percent of all taxes, while the poorest 50 percent pay about 3 percent. In fact, some people pay nothing at all when tax credits and deductions are factored in.Should the wealthiest...
by Shelly McRae 6 years ago
What are the advantages and disadvantages of the flat tax system?Smaller countries use this type of tax system. Is it a viable system for a country as large and financially diverse as the United States?
by Susie Lehto 2 years ago
It would put more money in the hands of the working class, and provide growth and opportunities. It would eliminate taxes that are ridiculous (example: Obamacare). It would end the IRS and Washing cartel. It would be post-card size filing, a real simple form. To me, it looks like what...
by taburkett 5 years ago
Is it time to replace the IRS with a true fair tax system?Is it time to replace the IRS and current disproportionate tax system with a 1% charge on every commercial monetary transaction that creates equal contribution for all?
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