A report on Tax and Proportional tax

Total revenue from direct and indirect taxes given as share of GDP in 2017
Pieter Brueghel the Younger, The tax collector's office, 1640
Substitution effect and income effect with a taxation on y good.
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of 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.

- Proportional tax

In between is a proportional tax, where the effective tax rate is fixed, while the amount to which the rate is applied increases.

- Tax
Total revenue from direct and indirect taxes given as share of GDP in 2017

3 related topics with Alpha

Overall

Flat tax

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A flat tax (short for flat-rate tax) is a tax with a single rate on the taxable amount, after accounting for any deductions or exemptions from the tax base.

It is not necessarily a fully proportional tax.

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Tax rate

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In a tax system, the tax rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.

In a proportional tax, the tax rate is fixed and the average tax rate equals this tax rate.

Regressive tax

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A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.

In between is a flat or proportional tax, where the tax rate is fixed as the amount subject to taxation increases.