Examlex
Systems theory marks:
Proportional Tax
A tax system where the tax rate remains constant regardless of the amount subject to tax, resulting in taxpayers paying the same percentage of their income regardless of the income level.
Higher-income Persons
Individuals or households that have an income significantly above the average for a certain society or area.
Taxes
Mandatory financial charges imposed by a government on individuals, businesses, and transactions to fund public expenditures.
Progressive Tax
A taxation system where the tax rate increases as the taxable amount (income or wealth) increases, aiming to achieve a more equitable distribution of wealth.
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