Asked by Jordan Parker on Jul 17, 2024
Verified
Under a proportional income tax,the average tax rate
A) decreases as income increases.
B) increases as income increases.
C) remains constant at all levels of income.
D) initially decreases,then increases,as income increases.
Proportional Income Tax
A taxation system where the tax rate remains constant regardless of the amount of income.
Average Tax Rate
The percentage representation of total taxes paid in relation to the overall taxable income or expenditure.
- Examine the justice and productivity of the present tax system and potential alterations.
Verified Answer
AC
Asisipho CenganiJul 19, 2024
Final Answer :
C
Explanation :
Under a proportional income tax system, the tax rate remains the same at all levels of income. This means that the average tax rate is constant and does not change as income increases.
Learning Objectives
- Examine the justice and productivity of the present tax system and potential alterations.