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The chart describes a
tax system
In this tax system, higher-income earners pay a(n)
proportion compared to lower-income earners.

Respuesta :

Answer:

- Proportional

equal

Explanation:

The given chart system discusses a 'proportional' tax system in which a similar rate of interest is charged across all the income-groups in the economy. The rate of tax is fixed by the government that needs to be paid by each taxpayer equally in proportion to their income. For example, a person earning $100,000 would pay $10000 as the tax if tax rate is 10% while one who earns $10000 would pay $1000 as the tax. Thus, higher-income earners pay an equal proportion in comparison to the low-income earners.

Parrain

The tax system where earners pay in a tax that is proportional to their income is a Proportional tax system.

What happens in a proportional tax system?

  • Everyone is charged the same tax rate.
  • This means that people pay according to the size of their salaries.

Higher income earners would pay a higher amount than lower income earners but they would still pay the same proportion of their taxes. For instance, if the tax rate was 5%, they would all pay 5% of their salaries.

In conclusion, this is a proportional tax system.

Find out more on proportional tax at https://brainly.com/question/1376513.

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