proportional taxation

proportional taxation

a structure of TAXATION in which tax is levied at a constant rate as INCOME rises, for example, 10% of each increment of income as income rises. This form of taxation takes the same proportion of tax from a low-income taxpayer as from a high-income taxpayer. Compare PROGRESSIVE TAXATION, REGRESSIVE TAXATION.
References in periodicals archive ?
The answer seems to be that proportional taxation is appropriate if and only if the marginal utility of income curve is a rectangular hyperbola.
creators of the modern liberal doctrine (libertarianism) have pleaded for the withdrawal of the state from the economic activity, the renunciation of using the taxes as an instrument of intervention in the economy, the replacement of the progressive income taxation of natural persons with proportional taxation, the reduction of the taxation rates, etc.
Thus, on a "benefit received principle", this would justify proportional taxation.
We extend then in Section 4 the case of proportional taxation to the case of income-tax progression and derive a necessary condition for an optimal subsidy rate.
The Political Criteria: Self-Taxation, Healthy Finances, and clear Laws Oriented to Proportional Taxation
This situation may occur in particular for proportional taxation, uniform value-added tax (VAT), and fixed-rate sharecropping arrangements.
One special feature of the tax reforms in the Nordic countries was that the previous progressive taxation of the sum of the taxpayer's income from all sources was replaced by separate proportional taxation of income from capital and progressive taxation of earned income.
Y demonstrates that MU declines at the same rate as money income rises, and calls for the use of proportional taxation.
Table 1 looks at the effects of progressive versus proportional taxation on relative wage rates.
This legislation goes a long way toward restoring fair and proportional taxation and helps to foster the continued innovative spirit that is the foundation of American business," said Lezlee Westine, President & CEO of TechNet.
Johnson for his continued leadership as we work to restore fair, proportional taxation to victims of the ISO AMT crisis," stated Tim Carlson, President of the Coalition for Tax Fairness.
The Coalition for Tax Fairness welcomes the support of TechNet as we work to restore fair, proportional taxation to victims of the ISO AMT crisis," stated Tim Carlson, President of the Coalition for Tax Fairness.

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