Which of the following is NOT a type of tax structure?

The classification of tax structures is an essential aspect of economics, particularly in understanding how different taxes impact individuals and the economy as a whole.

A progressive tax structure is designed so that the tax rate increases as the taxable amount increases, typically imposed on individuals with higher incomes. This system is intended to reduce income inequality by ensuring that those who earn more contribute a larger percentage of their income in taxes.

A proportional tax structure, sometimes referred to as a flat tax, charges the same percentage of tax regardless of the income level. This means that everyone pays the same rate, which can be simpler and can encourage investment and spending due to its predictability.

A regressive tax structure imposes a higher percentage rate of taxation on low-income earners compared to high-income earners. This can happen because essential goods and services (like sales tax) can take a larger portion of a lower income relative to a higher one, thus disproportionately affecting those with limited resources.

In contrast, an inflation tax is not a formal tax structure but is rather an economic concept that refers to the loss of purchasing power resulting from inflation. It describes how inflation can erode the value of money held by individuals, effectively acting as a tax on cash holdings rather than being an actual government-im