Question

Which of the following is a key characteristic of a flat tax system?

• A. Tax rates increase progressively with income.
• B. Tax rates decrease as income increases.
• C. A single tax rate is applied to all income levels.
• D. Tax rates are determined by the number of dependents a person has.

Answer 1

Answer:

C. A single tax rate is applied to all income levels.

• A flat tax system is, by definition, a proportional tax system where a single rate is applied to all taxable income.