Proportional Tax (Noun)
Meaning
Any tax in which the rate is constant as the amount subject to taxation increases.
Classification
Nouns denoting possession and transfer of possession.
Examples
- A proportional tax is a type of tax where the tax rate remains the same regardless of the taxpayer's income level.
- The government implemented a proportional tax system to ensure that everyone contributes their fair share to the country's revenue.
- In a proportional tax system, the tax rate is applied uniformly to all taxpayers, regardless of their income or wealth.
- A proportional tax is often contrasted with a progressive tax, where the tax rate increases as the taxpayer's income increases.
- The proportional tax rate of 20% was applied to all income earned by individuals and businesses, making it a simple and fair system.