A tax rate structure where the tax rate remains at the same rate regardless of the tax base is:
A) A progressive rate structure.
B) A proportional rate structure.
C) A regressive rate structure.
D)None of these.

Question

Quizplus · Accepted Answer

A proportional rate structure is also known as a flat tax, where the tax rate remains the same regardless of the tax base or income level. This means that everyone pays the same percentage of their income as taxes. It is different from a progressive rate structure where the tax rate increases as the tax base or income level increases, and a regressive rate structure where the tax rate decreases as the tax base or income level increases.

A Tax Rate Structure Where the Tax Rate Remains at the Same