A tax system is proportional it means a) every quintile bears 20% of the total tax...
- A tax system is proportional it means
a) every quintile bears 20% of the total tax burden.
b) the rate of tax is the same for everybody.
c) every good is taxed at the same rate.
d) the tax burden as a proportion of income is the same for all taxpayers.
Homework Answers
Option D.
- A proportional tax system is a taxation method in which the tax burden as a proportion of income is the same for all taxpayers.
- Under this tax system, all the tax payers pay an equal share of tax from their incomes.
- They are required to pay an equal amount irrespective of their income levels as they are taxed in proportion to their incomes.
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