Question

When the tax rate does not change with respect to the amount of income, it is a flat tax.

O True
O False

Answer 1

False

Because it is called Proportional Tax

The fixed-rate doesn't increase or decrease as income rises or falls. An individual who earns $25,000 annually would pay $1,250 at a 5% rate, whereas someone who earns $250,000 each year would pay pays $12,500 at that same rate