Question

A ______ tax structure applies the same tax rate to all levels of income, while a ______ tax structure applies higher tax rates as the tax base increases and a ______ tax structure applies lower tax rates as the tax base increases. Multiple choice question.

Answer 1

1. Proportional taxation applies where the same tax rate is used no matter the level of income.

2. A progressive tax structure uses higher tax rates with increases in the tax base.

3. A regressive tax structure applies lower tax rates despite increases in the tax base.

The differences between the tax structures

The implication of the above explanations is that a progressive tax system takes a larger percentage of income from high-income groups than from low-income groups. A proportional tax system takes the same percentage of income from all income groups, while a regressive tax structure operates from the opposite angle, taking a larger percentage of income from low-income groups than from high-income groups.

Thus, one of these three tax structures may be prevalent in some countries of the world.

Learn more about the progressive, proportional, and regressive tax structures here: brainly.com/question/13701600