Proportional tariff
A proportional tariff exists if the amount of money to be paid increases by the same amount as the assessment base .
In the sales tax , a constant is tax rate applied, so here is present a proportional rate.
This also applies to the contribution to statutory health and long-term care insurance plus additional contributions in Germany, provided that the relevant income does not exceed the contribution assessment limit. Above this limit, the tariff is degressive .
With regard to income tax , one speaks of a proportional tariff or a proportional tax when all taxpayers have to pay the same percentage of their income , regardless of the amount of their income ( flat tax ).
