Question

Which type of tax is characterized as having a "fixed" rate? A) regressive tax B) progressive tax C) inheritance tax D) proportional tax

Answer 1

The answer is regressive tax. Example: sales tax. With this tax the rate is the same rate for everyone, no matter their income. The only thing that changes is the percent of your income you pay. Someone who makes less money will pay a higher percentage of their income than someone who makes more money.

Answer 2

The correct answer is D) Proportional tax.

The type of tax that is characterized as having a fixed rate is Proportional tax.

Among the income taxes, the proportional tax, the same proportion of the tax is levied in all the registered people that pay taxes. It does not matter the income they get, low, medium or high class. The opposite of this tax is the progressive tax, where the tax is adjusted by income.