Asked by Facienne Guerlanda on May 16, 2024
Verified
A tax rate structure where the tax rate remains at the same rate regardless of the tax base is:
A) A regressive rate structure.
B) A proportional rate structure.
C) A progressive rate structure.
D) None of these.
Proportional Rate Structure
A tax system where the tax rate is the same for all income levels, meaning everyone pays the same percentage of their income in taxes, regardless of how much they earn.
- Acquire an understanding of the distinctions between progressive, proportional, and regressive tax systems.
Verified Answer
PK
Psycho KillerMay 20, 2024
Final Answer :
B
Explanation :
A proportional rate structure is a tax rate structure where the tax rate remains at the same rate regardless of the tax base. In other words, everyone pays the same percentage of their income or property value in taxes. This is also known as a flat tax rate system.
Learning Objectives
- Acquire an understanding of the distinctions between progressive, proportional, and regressive tax systems.