Question

What is an advantage of the proportional tax system?

• A. It is simple to calculate by multiplying tax rate and tax base
• B. The tax rate varies for different income groups
• C. It is complex to calculate
• D. Only high-income earners pay taxes

Answer 1

Answer:

A. It is simple to calculate by multiplying tax rate and tax base

• A key advantage of proportional taxes is their simplicity—taxes are calculated by straightforward multiplication of the fixed rate and taxable income