Proportional Tax

Proportional Tax is a tax system pots the same fraction of income from all taxpayers, regardless of their earnings. A proportional tax applies a similar tax rate across low, middle and high-income taxpayers. The proportional tax is unlike a progressive levy, where taxpayers with higher incomes fork out higher tax prices than taxpayers with lower incomes. A proportional tax is often a tax imposed so the tax rate is actually fixed, with no change because taxable base volume increases or diminishes. The amount of the tax is compared to the amount be subject to taxation.