BY: AKIB JAVED KHAN

DEPARTMENT OF MARKETING ,BU.

TAX RATE

Definition of 'Tax Rate:

The percentage at which an individual or corporation

is taxed. The tax rate is the tax imposed by the

federal government and some states based on an
individual's taxable income or a corporation's
earnings.

1. Progressive tax rate

2. Proportional (flat) tax rate
3. Regressive tax rate

PROGRESSIVE
A tax that takes a larger percentage from the

income of high-income earners than it does

from low-income individuals.
Basically, taxpayers are broken down into
categories based on taxable income; the more
one earns, the more taxes they will have to
pay.

REGRESSIVE
A tax that takes a larger percentage from low-

income people than from high-income people.

A regressive tax is generally a tax that is
applied uniformly. This means that it hits
lower-income individuals harder.

PROPORTIONAL
A tax system that requires the same

percentage of income from all taxpayers,

regardless of their earnings. A proportional tax
applies the same tax rate across low-, middleand high-income taxpayers. The proportional
tax is in contrast to a progressive tax, where
taxpayers with higher incomes pay higher tax
rates than taxpayers with lower incomes.
A proportional tax is also called a flat tax.