A Proportional Tax Is Defined as a Tax for Which

question 247

Multiple Choice

A proportional tax is defined as a tax for which the

• A) average tax rate rises as income increases.
• B) average tax rate falls as income increases.
• C) average tax rate remains constant at all levels of income.
• D) dollar tax liability of those with higher income is the same as the dollar tax liability of those with lower income.

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Definitions:

Discretionary Income

The amount of an individual's income that is left for spending, investing, or saving after taxes and personal necessities (like food and shelter) have been paid.

Luxurious Vacation

A high-end travel experience featuring premium accommodations, exclusive amenities, and exceptional service.

Ritz-Carlton

A luxury hotel brand known for its high level of service quality and customer care, operating globally under the Marriott International portfolio.

Disposable Income

The financial resources that remain for saving and spending in households, following the deduction of income taxes.