Which, if any, of the following taxes are proportional (rather than progressive)?
A)Federal corporate income tax.
B)Federal employment taxes (i.e., FICA, FUTA).
C)Federal estate tax.
D)Federal gift tax.
E)All of the above.

Question

Quizplus · Accepted Answer

Proportional taxes are those where everyone pays the same percentage of their income, regardless of how much they earn. Both FICA (Social Security and Medicare) and FUTA (unemployment) are proportional taxes because they are a fixed percentage of the employee's wages, and the employer pays the same percentage. The other taxes listed are progressive, where the percentage of the tax rate increases as the amount subject to tax increases.

Which, If Any, of the Following Taxes Are Proportional (Rather