Multiple choice

In which type of taxes are all incomes taxed at a uniform rate?

  1. Regressive Tax

  2. Progressive Tax

  3. Proportional Tax

  4. Digressive Tax

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is a proportional tax. In this type of tax, all the incomes are taxed at a uniform rate whether low or high, and it is not linked with the income of tax payer. Hence, in this type of tax the income is taxed at a uniform rate.