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Briefly Evaluate the Advantages and Disadvantages of a Lump-Sum Tax

question 210

Essay

Briefly evaluate the advantages and disadvantages of a lump-sum tax.


Definitions:

Proportional Tax

A tax system wherein the tax rate is fixed and applied uniformly to all taxpayers, regardless of their income level.

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.

Benefits Tax

A taxation principle where taxes are levied according to the benefits received by the taxpayer.

Proportional

Characterized by a constant ratio or relation in degree or number between two or more quantities; directly comparative in size, degree, or amount.

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