Question 7(1 point) Which of these best describes a proportional tax? a an income tax that takes the same percentage of Income regardless of the amount of income earned b an income tax that becomes increasingly lower for those who live below the national poverty line c a income tax that varies depending on the amount of disposable income within a household d an income tax that is higher for households earning relatively high incomes from both spouses

## Step 1<br />A proportional tax, also known as a flat tax, is a tax system where the tax rate remains constant, regardless of the amount of subject-matter value. This means that the tax rate is the same for all taxpayers, regardless of their income level.<br /><br />## Step 2<br />Option A states that a proportional tax is an income tax that takes the same percentage of income regardless of the amount of income earned. This is a correct description of a proportional tax system.<br /><br />## Step 3<br />Option B suggests that a proportional tax is an income tax that becomes increasingly lower for those who live below the national poverty line. This is not correct because a proportional tax system does not vary based on income levels.<br /><br />## Step 4<br />Option C suggests that a proportional tax is an income tax that varies depending on the amount of disposable income within a household. This is not correct because a proportional tax system does not vary based on the amount of disposable income.<br /><br />## Step 5<br />Option D suggests that a proportional tax is an income tax that is higher for households earning relatively high incomes from both spouses. This is not correct because a proportional tax system does not vary based on the income level of the taxpayer.