Paying a tax of $10 on an income of $100, a tax of $20 on an income of $200, and a tax of $30 on an income of $300 is an example of a(n):

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Quizplus · Accepted Answer

This is an example of a proportional tax because the tax rate remains constant regardless of the amount of income. In each case, the tax is 10% of the income ($10 on $100, $20 on $200, $30 on $300), which is characteristic of a proportional tax system.

Paying a Tax of $10 on an Income of $100