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.
Under this important legislation, all employees and families will pay a fair and proportional tax on money actually made, and employees and families who have been unable to pay the severely disproportionate taxes imposed on phantom income will be relieved of the impossible burden of ongoing liability, related interest and penalties.
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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