![Economics 101: Proportional Tax](https://i0.wp.com/sterlingterrell.net/wp-content/uploads/2017/01/Capture-36.png?fit=638%2C423&ssl=1)
[This is part of the series: The Complete Guide To Economics 101.]
What is a proportional tax?
A Proportional Tax is a tax that’s rate is the same regardless of one’s income.
This is essentially a flat tax, where every dollar of income earned is taxed the same.
A proportional tax penalizes all income the same way.
This is obviously different than a progressive tax, or a regressive tax.