Practicing Success
The taxation regime in which a constant rate of tax is charged from all people, irrespective of their income levels is. |
Progressive Taxation Regressive Taxation Proportional Taxation Degressive Taxation |
Proportional Taxation |
The correct answer is Proportional Taxation. Proportional taxation is a taxation system in which a constant rate of tax is charged from all people, regardless of their income levels. This means that everyone pays the same percentage of their income in taxes, regardless of whether they are rich or poor. For example, if the proportional tax rate is 10%, then someone who earns Rs 10,000 will pay Rs 1,000 in taxes, and someone who earns Rs 100,000 will pay Rs 10,000 in taxes. The other options are incorrect:
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