Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of $12,000 on $120,000. The tax is a

Name: Arthur pays tax of $5,000 on taxable income of $50,000 while taxpayer Barbara pays tax of $12,000 on $120,000. The tax is a
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A proportional tax means that the tax rate is constant regardless of income. Both Arthur and Barbara pay a tax rate of 10% on their respective incomes ($5,000/$50,000 and $12,000/$120,000), indicating a proportional tax system.

Arthur Pays Tax of $5,000 on Taxable Income of $50,000