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Which of these is the BEST definition of a proportional tax?

A) a tax rate that is fixed for all people
B) a tax rate that depends upon a person's purchases
C) a tax amount that is the same amount for everyone
D) a tax that is based on a percentage of a person's income

asked
User Hisham
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2 Answers

7 votes

Answer: i)Definition - also known as a flat tax, imposes a constant tax rate throughout the tax base.

Explanation:

ii) As the tax base increases, the taxes paid increase proportionally.

iii) The marginal tax rate remains constant and equals the average tax rate across the tax base

iv) The most common example of a proportional tax is a sales tax.

answered
User LampShaded
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8.0k points
5 votes

Answer:

The correct answer is A.

Step-by-step explanation:

I was looking for the right answer and couldn't find it so i guessed and got it right on usa test prep

answered
User Carnieri
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7.6k points

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