A proportional tax rate system represents:

Question

Quizplus · Accepted Answer

A proportional tax rate system is also known as a flat tax rate system. In this system, the tax rate remains the same regardless of the individual's income level. Therefore, option B is the correct choice. Option A is incorrect because it refers to a progressive tax rate structure where the tax rate increases as income increases. Option C is incorrect because the U.S. federal income tax system is not a flat tax rate system, but a progressive tax rate system.

A Proportional Tax Rate System Represents