Asked by Nicholas Pride on May 02, 2024
Verified
A tax rate that remains the same as the tax base increases is an example of what kind of tax rate structure?
A) Proportional.
B) Recessive.
C) Regressive.
D) Progressive.
Tax Rate Structure
The method or system by which taxes are levied on income, goods, services, and properties, which can be progressive, regressive, or proportional.
Proportional
A tax structure where the rate remains constant regardless of income level.
- Absorb the fundamentals of progressive, proportional, and regressive tax configurations.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
A
Explanation :
A proportional tax rate structure means that the tax rate stays the same regardless of the tax base. This means that everyone pays the same percentage of their income in taxes, which is often seen as fair because it treats everyone equally. So, a tax rate that remains the same as the tax base increases is an example of a proportional tax rate structure.
Learning Objectives
- Absorb the fundamentals of progressive, proportional, and regressive tax configurations.