The principle that taxes should be levied based on the taxpayer's ability to pay, suggesting that as income or wealth increases, the marginal utility decreases, allowing for higher tax rates on higher income tiers.
A flat tax is a simple proportional tax system with a single rate. It has no reliefs or exemptions apart from a standard personal allowance, thereby streamlining tax compliance and administration.
A Progressive Tax is a tax mechanism where the tax rate increases as the tax base increases. This kind of tax structure aims to distribute the tax burden more equitably based on the taxpayer's ability to pay.
A proportional tax, also known as a flat tax, imposes the same percentage rate of taxation on everyone, regardless of income or wealth level.
Proportional taxation is a tax system where the tax rate remains constant regardless of the amount of income earned. It applies a uniform tax rate to all individuals, which means that both the wealthy and poor pay the same percentage of their income in taxes.
