Proportional Tax

Proportional tax, also known as a flat tax, is a system where everyone pays the same percentage of their income, regardless of how much they earn. For example, if the tax rate is 10%, both someone earning $30,000 and someone earning $300,000 pay 10% of their income in taxes. This means the tax rate remains constant across all income levels, making the system straightforward and easy to understand. It contrasts with progressive taxes, where higher earners pay a higher percentage, and regressive taxes, where lower earners pay a higher percentage.