A presidential candidate proposes replacing the current income tax system with a flat income tax rate system. The flat tax system would implement a tax rate of 12% on all income earned by a taxpayer. The 12% tax rate is the same for all income levels. Which one of the following statements is correct? A) The change would replace a regressive tax with a progressive tax. B) The flat income tax decreases horizontal equity because similarly situated taxpayers would now pay different amounts of tax. OC) The flat income tax system would be more complex to calculate than the current income tax system. O D) The change would replace a progressive tax with a proportional tax.

A presidential candidate proposes replacing the current income tax system with a flat income tax rate system. The flat tax system would implement a tax rate of 12% on all income earned by a taxpayer. The 12% tax rate is the same for all income levels. Which one of the following statements is correct? A) The change would replace a regressive tax with a progressive tax. B) The flat income tax decreases horizontal equity because similarly situated taxpayers would now pay different amounts of tax. C) The flat income tax system would be more complex to calculate than the current income tax system. D) The change would replace a progressive tax with a proportional tax