With the advent of taxation system in financial sector of either a company or a country, there has always lived a heated debate on “Flat tax Pros and Cons”. In order to under stand flat taxes one needs to under stand what taxes really are. A tax is a form of a contribution levied on employed individuals usually in order to generate revenue for the state or the government. Taxes are the basic and one of the major sources of revenues of any government. “Flat tax Pros and Cons” are undoubtedly many. Many experts though are of the opinion that taxation should be progressive rather than flat. In progressive taxation system, as you climb up the ladder of social classes, the burden of taxes also increases and rightly so. In this way people who earn more are subjected to more taxes and people who earn less are subjected to lighter taxes. In case of “flat taxes” there is no concept of richer paying more and poor less. In fact there is just one defined rate of tax that is introduced by government and people have to pay accordingly irrespective you earn a hundred dollars a month or a hundred thousand dollars a month. In this way poor people feel themselves more burdened. Flat taxes are also one of the major reasons of class conflicts among the poor countries as poor people feel it as an unjust levy by the government imposed on them. The benefits or the Pro of flat taxes are that this method of taxation is much simpler to calculate as everyone has to pay the same rate. Since there is one predefined rate of taxes, it attracts a lot of local investment and as well as foreign direct investment (FDI) into a country. This leads to more money in the market. There is lesser bureaucracy involved in this flat taxation system therefore many of the undesired glitches are also avoided. On the other hand the negatives or Cons “Flat taxes” bring to an economy are many. The first and foremost is rich people get richer and poor people get poorer. This is because everyone has to pay equal amount of tax irrespective of the income. Due to this “tax evasion” starts occurring i.e. people don't give taxes to the government. Although it is illegal, but people feel that is the only way out. As a result government earns less tax revenues and this tends to raise the rates of taxes or imposition of new taxes which further strengthens the concept of tax evasion in people. Flat tax pros and cons are humongous but it is usually believed that flat tax rate do little good to an economy as compared to the harms caused by it. This is the reason why people and experts are moving towards the progressive taxation system as that system is considered more just on people and if people are satisfied with the taxation system, they tend to give taxes than to evade it and hence all leads to greater revenues for the government. how many grams per ounce