A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level.

Question

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In a proportional tax system, all individuals or households pay the same percentage of their income in taxes. This means that regardless of whether someone is lower or higher income, they will pay the same percentage of their income in taxes. This differs from a progressive tax system in which those with higher incomes pay a larger percentage of their income in taxes, and a regressive tax system in which those with lower incomes pay a larger percentage of their income in taxes. A complementary tax system is not a recognized term in taxation.

A ________ System Is One in Which Households Pay the Same