Final answer:
A proportional tax system applies the same tax rate to all income levels, ensuring equality in tax payments.
Explanation:
A proportional tax system has the same tax rate for everyone regardless of income levels. This means that whether a person earns [tex]$20,000 or $[/tex]120,000, they would pay the same percentage of their income in taxes.
For example, in a flat tax system where the tax rate is 15%, both someone earning [tex]$30,000 and someone earning $[/tex]60,000 would pay $4,500 in taxes.
Proportional taxes are also known as flat taxes and are designed to ensure equality in tax payments among individuals.
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