Select the correct answer.

How does the rate of a proportional tax change with income?

A. The rate increases as income increases.
B. The rate remains the same, even if income increases or decreases.
C. The rate decreases as income increases.
D. The rate decreases as income decreases.



Answer :

Final answer:

Proportional tax rate stays constant with income changes.


Explanation:

Proportional tax remains the same regardless of income level. This means the tax rate does not change as income increases or decreases. For instance, in a flat tax system, all taxpayers pay the same percentage of their income as tax.


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