FIGURE 18-1
-Refer to Figure 18-1.A proportional tax is illustrated by curve(s)

Question

Quizplus · Accepted Answer

A proportional tax means that the tax rate remains constant regardless of income level. In the graph, the only curve that represents a constant tax rate is curve B, as it is a straight line. Curves A, C, and D all represent a progressive tax system, where the tax rate increases with income level. Therefore, the only curve that illustrates a proportional tax is curve B.

FIGURE 18-1 -Refer to Figure 18-1.A Proportional Tax Is Illustrated by Curve(s)