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Question
Taxes in which the rate of tax remains the same, though the tax bases changes are called ______.
Options
Direct taxes
Indirect taxes
Progressive taxes
Proportional taxes
Solution
Taxes in which the rate of tax remains the same, though the tax bases changes are called Proportional taxes.
Explanation:
Proportional taxes are those in which the tax rate remains constant regardless of changes in the tax base. This means that everyone pays the same percentage of their income or wealth in taxes, regardless of how much they earn or own.
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