Proportional Tax

An income tax that takes the same percentage of income from everyone regardless of how much (or little) an individual earns.

The U.S. and Canada do not use this system. It is quite controversial and certainly debatable whether or not this is a fair system.

Investment dictionary. . 2012.

Look at other dictionaries:

  • proportional tax — ➔ tax1 * * * proportional tax UK US noun [C] TAX ► a tax that is charged at the same rate for everyone, whatever their level of income: »National Insurance, at 11% for every employee, is a proportional tax …   Financial and business terms

  • Proportional tax — A proportional tax is a tax imposed so that the tax rate is fixed as the amount subject to taxation increases. [Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), Concepts of Taxation , Dryden Press: Fort Worth,… …   Wikipedia

  • proportional tax — noun any tax in which the rate is constant as the amount subject to taxation increases • Hypernyms: ↑tax, ↑taxation, ↑revenue enhancement * * * noun : a tax in which the tax rate remains constant regardless of the amount of the tax base * * *… …   Useful english dictionary

  • proportional tax — Fin a tax whose amount is strictly proportional to the value of the item being taxed, especially income. See also progressive tax, regressive tax …   The ultimate business dictionary

  • proportional tax — noun Date: circa 1943 a tax in which the tax rate remains constant regardless of the amount of the tax base …   New Collegiate Dictionary

  • proportional tax — See: flat tax …   Accounting dictionary

  • proportional tax — See flat tax …   Big dictionary of business and management

  • tax — 1 vt [Medieval Latin taxare to assess for taxation, tax, from Latin, to assess, value, fix] 1: to assess or determine judicially the amount of (costs of an action in court) 2: to levy a tax on tax the corporation tax capital gains tax·er n tax 2 …   Law dictionary

  • proportional — proportional, proportionate, commensurate, commensurable are often used without marked distinction because all mean being duly proportioned to something else. Proportional and proportionate both imply due proportions either to a related thing or… …   New Dictionary of Synonyms

  • Tax — Taxation An aspect of fiscal policy …   Wikipedia

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