a flat tax rate penalises those on low incomes and benefits those on high incomes.
So are you suggesting that people pay for goods based on their earnings? So if Im on $100K a year I pay $2 for my bananas, but only $1 if I'm on $50K?
I am a little unsure what you mean by saying that a GST penalises low income earners. It is effective at ensuring companies pay their rightful tax at the front end. This ensures more tax is rightfully collected and should theoretically ensure poorer people have better benefits to counteract living expenses.
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