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.

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Definitions:

Postdated Instrument

A financial instrument, such as a check, with a date in the future, indicating when it becomes payable.

Drawee Bank

The bank upon which a check is drawn, responsible for paying the check amount to the payee or bearer.

Liability

A legal obligation or responsibility, often in the form of debt or duty to compensate for loss or damage caused.

Improper Refusal

A situation where a party unjustly rejects a contract offer or fails to perform an action required by the agreement.