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

-A proportional tax tends to:

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2
 
-A proportional tax tends to:

Quizplus · Accepted Answer

Proportional tax is a tax policy in which the tax rate remains constant across different income levels. The table shows that under a proportional tax system, the absolute tax amount increases with income level, but the tax rate remains constant at 15%. Therefore, the income distribution remains essentially unchanged, and there is no significant impact on income inequality.

The Table Given Below Shows the Absolute Tax Amounts Under