Question

A proportionate increase in tax revenue to a more proportionate increase in gdp is called

Answer 1

Proportional tax is the taxing mechanism in which the taxing authority charges the same rate of tax from each taxpayer, irrespective of income. This means that lower class, or middle class, or upper class people pay the same amount of tax. Since the tax is charged at a flat rate for everyone, whether earning higher income or lower income, it is also called flat tax.