Which statement best describes a proportional tax?

Question

A) a tax where all levels of yearly income are taxed at the same rate
B) a tax on consumable goods or services such as gasoline
C) a tax that places levels of income into brackets
D) a tax where lower-income earners are charged at a higher rate

Answer 1

A) a tax where all levels of yearly income are taxed at the same rate

This statement best describes a proportional tax, also known as a flat tax, where everyone pays the same percentage of their income regardless of how much they earn.