proportional tax


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Related to proportional tax: degressive tax

proportional tax

A tax that charges the same percentage of income,regardless of the amount of income;also called a flat-rate tax.

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The only distortion under this simple case of a proportional tax system arises from the nondeductibility of the direct cost of obtaining higher education.
The bottom section displays the aggregate variables including the proportional tax rate [T.
The proportional tax cuts were introduced as part of the economic stimulus program drawn up by the administration of then Prime Minister Keizo Obuchi.
The progressive feature is needed, because a merely proportional tax would impinge in a more or less parallel way upon both the innocent and the guilty, that is, upon both material and positional consumption.
A proportional tax on access fees at the rate of t reduces the profit of an access provider by the factor 1/(1+t).
In a follow up study, Siegfried and Smith (1989) reached a similar conclusion that the broad taxation of services in Florida would have slight impact on moving the inherently regressive tax towards a proportional tax.
Theoretical treatment to tax evasion has been given by Allingham and Sandmo (1972) in which a model for income tax evasion is discussed in the context of proportional tax system.
The change in welfare for any household subject to the marginal redistribution policy of a demogrant financed by a proportional tax can be found by substituting [dB.
Fifth, the effects of taxes are made by comparing the base case burden with that of a proportional tax which raises the same revenue.
It can be easily shown (intuitively or algebraically) that a proportional tax does not change the degree of inequality.
Under a decision that the Bulgarian Parliament took at the end of November 2009, a BGN 101 excise duty for 1000 cigarettes was introduced instead of the previous BGN 41, while the proportional tax is 23% of the sales price instead of 40,5%.

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