MANAGEMENT

BUISENESS MANAGEMENT

TAXES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An income tax in which the tax rate is fixed, with no change as the taxable amount increases or decreases.
A
Progressive Tax
B
Indirect Tax
C
Regressive Tax
D
Proportional Tax
Explanation: 

Detailed explanation-1: -A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases. The amount of the tax is in proportion to the amount subject to taxation.

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: -The regressive tax rate line has a declining negative slope. The steeper the negative slope of the tax line, the more regressive the taxation. The degressive tax rate line has a rising slope initially, but it becomes constant after a point.

Detailed explanation-4: -FLAT TAX–A tax applied at the same rate to all levels of income.

Detailed explanation-5: -Definition: Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. This means that lower class, or middle class, or upper class people pay the same amount of tax.

There is 1 question to complete.