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A consumer is at the store and purchases a new vacuum cleaner. At checkout, that consumer will have to pay an additional tax on that purchase; a sales tax. What type of tax is a sales tax?
Progress tax
Proportional tax
Keynesian Tax
Personal Income tax
A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases. The amount of the tax is in proportion to the amount subject to taxation.
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