alleryStart learning →The Medicare payroll tax is described as which kind of tax?
AA progressive tax
BA regressive tax
CAn excise tax
DA proportional tax
Answer & Solution
Correct answer: D. A proportional tax
1. A flat rate has its own classification.
2. The income tax is progressive and some taxes are regressive.
3. We also call the Medicare payroll tax a proportional tax.
4. That is, it is a flat percentage of all wages earned.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 16 'Government Budgets and Fiscal Policy'_
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