All of a country’s citizens pay the an income tax that is 7% of their annual earnings. This tax is
tax.

A proportional tax system

Explanation:

A proportional tax system imposes the same tax rate to all taxpayers regardless of their income. It means that low income, middle income, and high-income earners be taxed using the same tax rate. A proportional tax system is also referred to as the flat tax system because it imposes taxes using the same tax rate.

A proportional tax system may seem fair because it taxes everyone equally. However, it is considered regressive because it imposes a higher tax burden on low-income earners.

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