Which of these is the BEST definition of a proportional tax?
1 answer:
Answer: i)Definition - also known as a flat tax, imposes a constant tax rate throughout the tax base.
Explanation:
ii) As the tax base increases, the taxes paid increase proportionally.
iii) The marginal tax rate remains constant and equals the average tax rate across the tax base
iv) The most common example of a proportional tax is a sales tax.
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