The figure below shows a simplified version of the current Canadian federal income- tax system. The marginal income- tax rates for the four ranges of income are 15 percent, 22 percent, 26 percent, and 29 percent, respectively. FIGURE 18- 2
-Refer to Figure 18- 2. What must be true of the four marginal income- tax rates in order for the tax to be considered a "flat" tax?

Question

The figure below shows a simplified version of the current Canadian federal income- tax system. The marginal income- tax rates for the four ranges of income are 15 percent, 22 percent, 26 percent, and 29 percent, respectively.  FIGURE 18- 2
-Refer to Figure 18- 2. What must be true of the four marginal income- tax rates in order for the tax to be considered a "flat" tax?

Quizplus · Accepted Answer

In order for the tax to be considered a "flat" tax, all four marginal income-tax rates must be the same. This would mean that regardless of income level, everyone pays the same percentage of their income in taxes.

The Figure Below Shows a Simplified Version of the Current