A flat tax system is one in which everyone pays the same tax rate, regardless of their income level. The tax rates are constant and do not change based on income. Therefore, option B is the correct answer. Option A describes a progressive tax system, while option C describes a regressive tax system. Option D refers to the marginal tax rate.

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A Flat Tax Is

Question 117

Multiple Choice

A flat tax is

A) A tax system in which tax rates rise as income rises.
B) A tax system in which tax rates are constant.
C) A tax system in which tax rates fall as income rises.
D) The tax rate imposed on the last dollar of income.

Correct Answer: