Examlex
In the figure above, item 3 points to the ____.
Income Tax
A tax imposed by the government directly on individuals' or organizations' income.
Proportional Tax
At the individual level, a tax whose average tax rate remains constant as the taxpayer’s income increases or decreases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) remains constant as GDP rises or falls.
Economy
The system by which a country's money and goods are produced and used, encompassing production, distribution, and consumption.
Tax-Transfer System
The mechanism through which governments collect taxes from individuals and businesses and redistribute the revenue in the form of government spending or transfers.
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