<P> If a consumption tax is to be related to income, the unspent income can be treated as tax - deferred (spending savings at a later point in time), at which time it is taxed creating a proportional rate using an income base . However, consumption taxes such as a sales tax can often exclude items or provide rebates in an effort to create social justice . In many locations, "necessary" items such as non-prepared food, clothing, or prescription drugs are exempt from sales tax to alleviate the burden on the poor . </P> <Ul> <Li> A poll tax is a fixed tax for each person . Since each person pays the same amount of money, it is proportional to the taxed service, neither increasing or decreasing . </Li> <Li> Television licences that are implemented in many countries, especially in Europe, are proportional taxes when they consist of a flat annual payment for the use of a television . </Li> <Li> A tithe where 10% of something, often income, is paid as a contribution to a religious organization or charity . </Li> <Li> Several US States impose a proportional income rate tax for individuals . These states are Colorado, Indiana, Illinois, Massachusetts, Michigan, Pennsylvania and Utah . </Li> </Ul> <Li> A poll tax is a fixed tax for each person . Since each person pays the same amount of money, it is proportional to the taxed service, neither increasing or decreasing . </Li> <Li> Television licences that are implemented in many countries, especially in Europe, are proportional taxes when they consist of a flat annual payment for the use of a television . </Li>

Value added tax is an example of proportional tax