Examlex
Explain how a SMT is different from a traditional manual transmission.
Proportional Tax
A tax in which the average tax rate is the same at all income levels. Everyone pays the same percentage of income in taxes.
Regressive Tax
A tax in which the average tax rate falls with income. People with higher incomes will pay a lower percentage of their income in taxes.
Neutral Tax
A tax system that is designed to have a neutral impact on the economic choices and behaviors of individuals and businesses, not favoring one decision over another.
Progressive Tax
A tax system where the rate increases as the taxable amount rises, aiming to reduce the tax burden on individuals who have a lower ability to pay.
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