Use the following to answer question:
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a proportional income tax?

Question

Use the following to answer question: 
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a proportional income tax?

Quizplus · Accepted Answer

A proportional income tax is one in which the tax rate is the same for all income levels. In panel A, the tax rate is 10% for all income levels, so this panel represents the effects of a proportional income tax.

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