# Proportional tax

proportionalproportion to their possessionsproportional income taxproportional system of taxationproportional taxes
A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.wikipedia
42 Related Articles

### Tax

taxationtaxeslevy
A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.
In between is a proportional tax, where the effective tax rate is fixed, while the amount to which the rate is applied increases.

### Flat tax

flat income taxflatflat rate
Flat taxes are defined as levying a fixed (“flat”) fraction of taxable income.
A true flat tax would be a proportional tax, but implementations are often progressive and sometimes regressive depending on deductions and exemptions in the tax base.

### Tax rate

marginal tax ratetax rateseffective tax rate
A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases.
In a proportional tax, the tax rate is fixed and the average tax rate equals this tax rate.

### Consumption tax

If a consumption tax is to be related to income, the unspent income can be treated as tax-deferred (spending savings at a later point in time), at which time it is taxed creating a proportional rate using an income base.
A simple value-added tax would be proportional to consumption but would also tend to be regressive on income at higher income levels, as consumption tends to fall as a percentage of income as income rises.

### Regressive tax

regressiveregressive taxationburdening the poor
The opposite of a progressive tax is a regressive tax, where the tax rate decreases as the amount subject to taxation increases.
The opposite of a regressive tax is a progressive tax, in which the average tax rate increases as the amount subject to taxation rises In between is a flat or proportional tax, where the tax rate is fixed as the amount subject to taxation increases.

### Income

earningsincomesearning power
"Proportional" describes a distribution effect on income or expenditure, referring to the way the rate remains consistent (does not progress from "low to high" or "high to low" as income or consumption changes), where the marginal tax rate is equal to the average tax rate.

### Consumption (economics)

consumptiondomestic consumptionspending
"Proportional" describes a distribution effect on income or expenditure, referring to the way the rate remains consistent (does not progress from "low to high" or "high to low" as income or consumption changes), where the marginal tax rate is equal to the average tax rate.

### Tax incidence

tax burdenburden of a taxeconomic burden
Proportional taxes maintain equal tax incidence regardless of the ability-to-pay and do not shift the incidence disproportionately to those with a higher or lower economic well-being.

### Tax exemption

tax-exemptexemption statustax exempt
They usually exempt from taxation household income below a statutorily determined level that is a function of the type and size of the household.

### Progressive tax

progressiveprogressive taxationprogressive income tax
A progressive tax is a tax imposed so that the tax rate increases as the amount subject to taxation increases.

### Declaration of the Rights of Man and of the Citizen

Declaration of the Rights of ManDeclaration of 1789Declaration of Rights of Man
The French Declaration of the Rights of Man and of the Citizen of 1789 proclaims: "A common contribution is essential for the maintenance of the public forces and for the cost of administration. This should be equitably distributed among all the citizens in proportion to their means."

### Wealth

savingsaffluentwealthy
If a consumption tax is to be related to income, the unspent income can be treated as tax-deferred (spending savings at a later point in time), at which time it is taxed creating a proportional rate using an income base.

### Sales tax

salessales taxesnational sales tax
However, consumption taxes such as a sales tax can often exclude items or provide rebates in an effort to create social justice.

### Social justice

social injusticesocialfairness
However, consumption taxes such as a sales tax can often exclude items or provide rebates in an effort to create social justice.

### U.S. state

Statestatesstatehood
* Several US States impose a proportional income rate tax for individuals.

### Taxation in Indiana

IndianaIndiana Property Tax caps
These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah.

### Illinois

ILState of IllinoisIll.
These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah.

### Massachusetts

MACommonwealth of MassachusettsMass.
These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah.

### Michigan

MIState of MichiganMich.
These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah.

### Pennsylvania

PACommonwealth of PennsylvaniaPa.
These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah.

### Utah

UTState of UtahUtah, U.S.
These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah.

### Sales and use taxes in California

sales taxCaliforniaCalifornia state taxes
From a tax terminology perspective, sales taxes are a proportional tax; though because of the fact that lower income earners may pay a greater percentage of their earnings to sales taxes than higher income earners, sales tax can also be described as a regressive tax.

### Dual income tax

The dual income tax system levies a proportional tax rate on all net income (capital, wage and pension income less deductions) combined with progressive tax rates on gross labour and pension income.

### Taxation in Denmark

The state personal income tax is a progressive tax while the municipal income tax is a proportional tax above a certain income level.

### House of Medici

MediciMedici familyMedicis
Although he never held any political office, he gained strong popular support for the family through his support for the introduction of a proportional system of taxation.