In Country X, the government requires employers to collect 9 percent of every employee's compensation as payroll tax.This is an example of
A)progressive tax.
B)regressive tax.
C)digressive tax.
D)proportional tax.

Question

Quizplus · Accepted Answer

A proportional tax is a tax that takes the same percentage of income from everyone, regardless of their income level. In this case, the payroll tax requires employers to collect 9 percent from every employee's compensation, which is a fixed percentage for everyone, making it a proportional tax. It is not progressive or regressive because it does not vary depending on the individual's income level. Digressive tax is not a recognized term, so it is not a valid option.

In Country X, the Government Requires Employers to Collect 9