An inexperienced accountant for culver corporation showed the following in the income statement: income before income taxes $395,000 and unrealized gain on available-for-sale securities and income before taxes are both subject to a 25% tax rate.

Congressman patrick indicates that he is opposed to tax proposals that call for a flat tax rate because the structure would not tax those individuals who have the ability to pay the tax. discuss the position of the congressman, giving consideration to tax rate structures (e. g., progressive, proportional, and regressive) and the concept of equity.