Question 3(Multiple Choice Worth 5 points) (02.02 MC)
How is a proportional tax different from a progressive tax?
O A proportional tax decreases with income level, but a progressive tax increases with income level.
O A proportional tax increases with income level, but a progressive tax decreases with income level.
O A proportional tax increases with income level, but a progressive tax is the same percentage for all.
O A proportional tax is the same percentage for all, but a progressive tax increases with income level.

a proportional tax is the same percentage for all, but a progressive tax increases with income level.

Explanation:

A tax is the level which the government imposes on the people that are living in a geographical area.

For the proportional tax, the high income earners and the low income earners all pay the same percentage of their income. For the Progressive tax, the rich pay a higher percentage while the poor pay a lower percentage. For the regressive tax, the low income earners pay a higher percentage while the high income earners pay a lower percentage.

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