MANAGEMENT

Detailed explanation-1: -A flat tax is a taxation system whereby a uniform tax rate applies to all taxpayers irrespective of their income. Such a tax usually doesn’t provide any deduction or exemption to the taxpayers. As both rich and poor are taxed at the same rate under this system, it draws a lot of flak for being anti-poor.

Detailed explanation-2: -Under a regressive tax system, low-income earners pay a higher amount of taxes than high-income earners. Under a proportional tax system, low-, middle-, and high-income earners pay the same tax rate. Proportional tax is also called flat tax.

Detailed explanation-3: -flat tax-Another term for a proportional tax. proportional tax-A tax that takes the same percentage of income from all income groups. regressive tax-A tax that takes a larger percentage of income from low-income groups than from high-income groups.

Detailed explanation-4: -The marginal tax rate is the amount of additional tax paid for every additional dollar earned as income. The average tax rate is the total tax paid divided by total income earned. A 10 percent marginal tax rate means that 10 cents of every next dollar earned would be taken as tax.