A tax is __________ if it takes a constant fraction of income as income rises.

Question

Quizplus · Accepted Answer

A tax is proportional if it takes a constant fraction of income as income rises, meaning that everyone pays the same percentage of their income in taxes. This is in contrast to a regressive tax, which takes a higher percentage of income from those with lower incomes, and a progressive tax, which takes a higher percentage of income from those with higher incomes. Aggressive is not a term commonly used to describe tax systems.

A Tax Is __________ If It Takes a Constant Fraction