A flat tax is designed so that everybody would be charged the same percentage of their income in tax. This means that someone who earns $100,000 a year would pay a larger amount in taxes than someone who earns $50,000 a year, but they would both pay the same percentage of their income in taxes.

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A Flat Tax

Question 33

Multiple Choice

A flat tax:

A) is designed so that everybody would pay the same number of dollars in taxes.
B) is designed in such a way that the tax rate decreases as a person's income rises.
C) is designed so that everybody would be charged the same percentage of their income in tax.
D) is designed to take a smaller percentage of higher incomes than of lower incomes
E) is designed in such a way that the tax rate increases as a person's income rises

Correct Answer: