Which of the Following Statements About a Proportionate Income Tax

question 14

Multiple Choice

Which of the following statements about a proportionate income tax rate structure is false?

• A) A theoretic justification for a proportionate rate is its superior potential for wealth redistribution.
• B) Under a proportionate rate structure, the marginal rate equals the average rate.
• C) Under a proportionate rate structure, the taxpayer with the least income pays the same percentage of income to the government as the taxpayer with the most income.
• D) None of the choices are false.