A tax system characterized by a constant marginal tax rate is a

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A tax system characterized by a constant marginal tax rate is a proportional tax system. In a proportional tax system, everyone pays the same percentage of their income in taxes, regardless of how much they earn. It is also referred to as a flat tax system. This is different from a progressive tax system, where those who earn more pay a higher percentage of their income in taxes, and a regressive tax system, where those who earn less pay a higher percentage of their income in taxes. A fair tax system is subjective and can vary from person to person depending on their views on taxation.

A Tax System Characterized by a Constant Marginal Tax Rate