Question 18
Public FinanceIn a country where an income tax of $100 was levied on an income of $1000 while an income of $5000 attracted a levy of $500, the tax system can be said to be
- A.regressive
- B.flexible
- C.progressive
- D.proportional
Show the answer and explanation
Answer: D (proportional)
Explanation
Both pay 10% of income: proportional.