Which of the following statements about a proportionate income tax rate structure is false?
A) A theoretic justification for a proportionate rate is its superior potential for wealth redistribution.
B) Under a proportionate rate structure, the marginal rate equals the average rate.
C) Under a proportionate rate structure, the taxpayer with the least income pays the same percentage of income to the government as the taxpayer with the most income.
D) None of the choices are false.

Question

Quizplus · Accepted Answer

A proportionate income tax rate structure does not necessarily have a theoretic justification for its potential for wealth redistribution. In fact, a progressive rate structure is typically seen as more effective for wealth redistribution as it taxes higher income individuals at a higher rate.

Which of the Following Statements About a Proportionate Income Tax