What is an income tax in which the average tax rate is the same for all taxpayers
A)a progressive tax
B)a regressive tax
C)a distortion-free tax
D)a proportional tax

Question

Quizplus · Accepted Answer

A proportional tax is an income tax in which the average tax rate is the same for all taxpayers, regardless of their income level. This means that everyone pays the same percentage of their income in taxes. This type of tax system is often seen as fair because everyone pays an equal proportion of their income, regardless of their income level. However, critics argue that a proportional tax can be regressive in practice, as it may place a greater burden on those with lower incomes.

What Is an Income Tax in Which the Average Tax