Proportional Tax

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  • A tax that is applied to all or any type of income at the same rate and that does not change or fluctuate regardless of socioeconomic status. These schemes typically exclude households whose incomes fall below a determined level (by statute). Such taxation is regressive, is usually unfair to the poor, and is not used in income tax systems in advanced societies, such as the United States and Canada. Individual state sales taxes, however, are usually regressive.


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