If the ________ tax rate equals the ________ tax rate, the tax would be proportional.

Name: If the ________ tax rate equals the ________ tax rate, the tax would be proportional.
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Question

Quizplus · Accepted Answer

A proportional tax is one where the tax rate remains constant regardless of the amount of the base subject to taxation. This occurs when the marginal tax rate (the rate on the next dollar of income earned) equals the average tax rate (total tax paid divided by total income).

If the ________ Tax Rate Equals the ________ Tax Rate

If the Tax Rate Equals the Tax Rate