Question

How is a proportional tax different from a progressive tax?

Answer 1

The difference is the percentage tax ratio calculation.

Step-by-step explanation:

In proportional tax, taxes are calculated with the same percentage for all type of groups, rich and poor pay same taxes.

In progressive tax, taxes are calculated with different percentage rates. So, more income will mean higher taxes, and less income will men lower taxes.

Answer 2

In the US federal tax system a proportional tax or flat tax, impacts low, middle and high-income earners equally. On the other hand, a progressive tax has more of a impact on higher-income individuals and businesses, so it is 'progressive' in a way that serves the progressive earners.