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From course:

Economics A Level

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Question:

What is Proportional taxation? [Flat Tax] -Why is it Hard?

Author: go kys



Answer:

-Where Everyone Pays the Same Proportion of Tax despite Income Levels. This Achieves Horizontal Equity -This is Difficult though. 25% Tax for example may be too High for those on Lower Incomes, and not raise Enough Revenue from those on High Incomes to Pay for all the Public Goods and Services the Government Provides


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go kys
go kys