If a tax has a proportionate rate structure, a taxpayer's marginal rate and average rate are equal.

Name: If a tax has a proportionate rate structure, a taxpayer's marginal rate and average rate are equal.
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A proportionate rate structure is also known as a flat tax, where the tax rate is the same for all levels of income. In this case, the marginal rate and average rate would be equal, as both would be the flat tax rate.

If a Tax Has a Proportionate Rate Structure, a Taxpayer's