The state government requires all persons to pay 5% of their incomes in income tax.This is an example of:
A)The benefits principle
B)a proportional tax
C)a regressive tax
D)a progressive tax

Question

The state government requires all persons to pay 5% of their incomes in income tax.This is an example of:
A)​The benefits principle
B)​a proportional tax
C)​a regressive tax
D)​a progressive tax

Quizplus · Accepted Answer

A proportional tax is one where everyone pays the same percentage of their income regardless of how much they earn. In this case, everyone is required to pay 5% of their income, so it is a proportional tax. The benefits principle would require individuals to pay taxes based on the benefits they receive from government programs or services. A regressive tax would mean that the tax rate decreases as income increases, while a progressive tax means that the tax rate increases as income increases. None of these apply to the situation described.

The State Government Requires All Persons to Pay 5% of Their