1. You have been asked by a client to prepare a memo which provides an overview of the U.S. tax system by defining and explaining the proportional, progressive and regressive tax rate structures. Present your answer in a standard business memo format, using appropriate terminology, correct grammar, spelling, and punctuation. Your memo should be directed to an entry level business person who is NOT a tax specialist.

1. Define each of these terms:

Proportional tax rate structure, progressive tax rate structure, and regressive tax rate structure

2. Describe the difference between each of these tax rate structures in the context of the U.S. Federal Income Tax system.
3. Provide an example of each type of tax using the Federal or State tax system.