Which Tax System Requires All Taxpayers to Pay the Same

question 4

Multiple Choice

Which tax system requires all taxpayers to pay the same percentage of their income in taxes?

• A)A regressive tax
• B)A proportional tax
• C)A progressive tax
• D)A horizontal equity tax

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Definitions:

Merchandise Sold

The total goods that have been sold by a company, typically measured over a specific period like a fiscal quarter or year.

Physical Inventory

The process of counting by hand the actual inventory of a business at a specific point in time.

Net Income

The net income of a business following the deduction of all costs, taxes, and expenses from its total earnings.

Gross Profit Rate

The gross profit rate is a financial metric indicating the percentage of revenue that exceeds the cost of goods sold, showcasing the efficiency of a company in managing its production costs.