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What are the characteristics of proportional tax?

      

What are the characteristics of proportional tax?

  

Answers


Judy
1. Simple
It is very simple and every person can understand it without any difficulty. It can be easily administered because there are no complicated tax slabs.
2. Easy
It is easy for every person to calculate the amount of tax he is required to pay.
3. No Change in Income Distribution
It does not affect the pattern of income distribution in the country because every person pays the same rate’ of tax
4. Neutralizing Effects. Proportional taxation has neutralizing effects on savings and incentives.
5. Non-disturbing
This tax system disturbs the economy as little as possible because every person contributes as nearly as possible in proportion to his ability to pay
Judiesiz answered the question on July 7, 2018 at 00:06


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