Consider an income-tax system that requires all individuals to pay exactly 3% of their income.This income-tax system is
A)proportional.
B)progressive,because the higher the individual's income,the greater the amount of tax paid.
C)regressive,since 3% is harder to pay for a low-income taxpayer.
D)fair,since everyone pays the same amount.
E)a lump-sum system,sometimes called a poll tax.

Question

Quizplus · Accepted Answer

A proportional tax system imposes the same percentage tax rate on all individuals, regardless of their income levels. In this case, everyone pays exactly 3% of their income, making it a proportional system. It is not progressive since the tax rate does not increase with higher incomes, nor is it regressive since a fixed percentage of income is paid by all taxpayers.

Consider an Income-Tax System That Requires All Individuals to Pay