Consider the country of Outland. In Outland, people pay 10 per cent of their income as a tax whether they earn $10,000 or $100,000 annually. Outland has _______ tax structure.

Question

Quizplus · Accepted Answer

A proportional tax structure is one in which the tax rate remains constant regardless of the amount of income. In Outland, since everyone pays 10% of their income as tax, whether they earn $10,000 or $100,000, it is a proportional tax system.

Consider the Country of Outland