The table given below shows the absolute tax amounts under five different tax policies for respective income levels. Table 19.2

- Refer to Table 19.2.Which of the tax policies is an example of a proportional tax?

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels. Table 19.2

- Refer to Table 19.2.Which of the tax policies is an example of a proportional tax?

Quizplus · Accepted Answer

A proportional tax is a tax in which the tax rate remains constant regardless of the income level. In Table 19.2, Alpha follows a proportional tax policy as the tax amount is directly proportional to the income level, i.e., 10% of the income. Therefore, the best choice is A) Alpha.

The Table Given Below Shows the Absolute Tax Amounts Under