Question

What is the primary characteristic of a proportional tax?

• A. The tax rate remains constant for all income levels.
• B. The tax rate increases as income increases.
• C. The tax rate decreases as income increases.
• D. The tax amount is fixed regardless of income.

Answer 1

Answer:

A. The tax rate remains constant for all income levels.

• In a proportional tax system, the tax rate is fixed, so all taxpayers pay the same percentage of their income.