The effective tax rate is the equivalent percent rate of the tax paid out of the dollar amount the tax is based on. A gasoline tax is a flat tax when considered in terms of consumption, a tax of, say,...The effective tax rate is the equivalent percent rate of the tax paid out of the dollar amount the tax is based on. A gasoline tax is a flat tax when considered in terms of consumption, a tax of, say, $0.30 per gallon is proportional to the amount of gasoline purchased. While sales tax is a flat percentage rate, it is often considered a regressive tax for the same reasons as the gasoline tax.
The effective tax rate is the equivalent percent rate of the tax paid out of the dollar amount the tax is based on. A gasoline tax is a flat tax when considered in terms of consumption, a tax of, say,...The effective tax rate is the equivalent percent rate of the tax paid out of the dollar amount the tax is based on. A gasoline tax is a flat tax when considered in terms of consumption, a tax of, say, $0.30 per gallon is proportional to the amount of gasoline purchased. While sales tax is a flat percentage rate, it is often considered a regressive tax for the same reasons as the gasoline tax.
