Asked by Maria Cazares on May 03, 2024
Verified
Which tax system requires all taxpayers to pay the same percentage of their income in taxes?
A) A regressive tax
B) A proportional tax
C) A progressive tax
D) A horizontal equity tax
Proportional Tax
A tax system where the tax rate remains constant regardless of the amount subject to taxation, meaning all taxpayers pay the same percentage of their income.
Regressive Tax
A tax applied uniformly, taking a larger percentage of income from low-income earners compared to high-income earners.
Tax System
The set of laws and regulations that govern how taxes are collected from individuals, businesses, and other entities within a country or specific jurisdiction.
- Identify the differences between progressive, regressive, and proportional tax regimes.
Verified Answer
KW
KeAra WilsonMay 06, 2024
Final Answer :
B
Explanation :
A proportional tax system, often referred to as a flat tax system, requires all taxpayers to pay the same percentage of their income in taxes, regardless of their income level.
Learning Objectives
- Identify the differences between progressive, regressive, and proportional tax regimes.