Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A flat income tax describes a situation where income is taxed at the same percentage rate along the full range of income. For example, a

"A flat income tax describes a situation where income is taxed at the same percentage rate along the full range of income. For example, a flat tax rate of 10 per cent would result in a person with $1,000 of taxable income paying $100 in tax, and a person with $50,000 of taxable income paying $5,000 in tax. No tax free thresholds would exist. Marginal and average tax rates would always be the same; the tax would be strictly proportional. This differ from the United States "progressive tax", which average tax rate rises when moving up the income scale.

After reading the definition of flat tax versus progressive tax, what would be your recommendation in this country, and why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Report On Trade Conditions In China

Authors: Harry R. Burrill, Raymond F. Crist

1st Edition

1138617806, 9781138617803

More Books

Students also viewed these Accounting questions

Question

6.8 Find a z o such that P(-z

Answered: 1 week ago

Question

Describe four issues that affect career management

Answered: 1 week ago