WAEC Economics 1999 Question 33

Question 33

Public Finance

Proportional tax refers to

  1. A.taxation of the rich only
  2. B.equal tax rate for all people
  3. C.unequal tax rate for all people
  4. D.taxation of civil servants only
Show the answer and explanation

Answer: B (equal tax rate for all people)

Explanation

Under a proportional tax, everyone pays the same percentage of income.