Final answer:
A tax system that is uniformly applied to every taxpayer and every transaction is called a proportional tax system. It treats everyone equally by charging the same percentage of their income as taxes.
Step-by-step explanation:
A tax system that is uniformly applied to every taxpayer and every transaction is called a proportional tax system. In this type of tax system, everyone pays the same percentage of their income, regardless of their level of income. For example, if the tax rate is 10%, someone earning $10,000 would pay $1,000 in taxes, while someone earning $100,000 would pay $10,000 in taxes.
This type of tax system is often considered fair because it treats everyone equally. However, critics argue that it does not take into account differences in wealth and ability to pay. For example, someone earning $10,000 may struggle to meet their basic needs if they have to pay $1,000 in taxes, while someone earning $100,000 may still have a comfortable lifestyle even after paying $10,000 in taxes.
Overall, a proportional tax system aims to distribute the tax burden equally among taxpayers and transactions.