All of a country’s citizens pay the  companies  an income tax that is 7% of their annual earnings.  this tax is  an indirecta progressivea proportionala regressive  tax.

All of a country's citizens pay the government an income tax that is 7% of their annual earnings. This tax is a Proportional tax.

Explanation:

The government of a country receives revenue in many forms. With this revenue, the government provides services to the people of the country and works for their betterment. One of the modes of income of the government is the taxes that the people pay to the government.  

The citizens of the country have to pay a certain percentage of the income that they on an annual basis. That percentage is 7% of the annual earnings to the government in the form of taxes. This form of tax is proportional tax because only a certain proportion of the total income is to be paid by the people to the government. In return the government has to provide services like building roads, tracks, providing street lights and so on which is to make the lives of the people easier and better.

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