Which, if any, of the following taxes are proportional (rather than progressive)?
A) State general sales tax.
B) Federal corporate income tax.
C) Federal estate tax.
D) Federal gift tax.
E) All of the above.

Question

Quizplus · Accepted Answer

A state general sales tax is a proportional tax, as everyone pays the same percentage of their income in taxes when they purchase taxable goods or services. The other options listed are progressive taxes, meaning the higher the income or value of the estate or gift, the higher the percentage paid in taxes.

Which, If Any, of the Following Taxes Are Proportional (Rather