Which tax system requires all taxpayers to pay the same percentage of their income in taxes
A)regressive
B)proportional
C)progressive
D)horizontal equity

Question

Quizplus · Accepted Answer

A system in which all taxpayers pay the same percentage of their income in taxes is called a proportional tax system. This means that regardless of one's income level, everyone pays the same tax rate. This is in contrast to a regressive tax system, in which lower-income individuals pay a higher percentage of their income in taxes than higher-income individuals, and a progressive tax system, in which higher-income individuals pay a higher percentage of their income in taxes than lower-income individuals. Horizontal equity is not a type of tax system, but rather the principle that individuals in similar situations should be treated equally under the law.

Which Tax System Requires All Taxpayers to Pay the Same