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Economics (AS & A Level) · May / June 2026 · Paper 14 · Question 22

9708Fiscal policy

What is a definition of a proportional tax?

  1. AA tax which takes a larger percentage of income from those on high incomes.
  2. BA tax which takes a larger amount of income from those on low incomes.
  3. CA tax which takes the same amount of income from all income groups.
  4. DA tax which takes the same percentage of income from all income groups.

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Correct answer: D. A tax which takes the same percentage of income from all income groups.

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