Asked by
Brijesh Anand
on Oct 25, 2024
Verified
A tax of $10 on an income of $100,$20 on an income of $200,and $30 on an income of $300 is:
A) regressive.
B) proportional.
C) progressive.
D) benefits.
Proportional Tax
A tax system where the tax rate remains constant regardless of the amount subject to taxation, meaning that taxpayers pay the same percentage of their income in taxes regardless of how much they earn.
Regressive Tax
A tax that takes a larger percentage of income from low-income earners than from high-income earners, essentially burdening the poor more than the rich.
- Ascertain and discriminate among progressive, proportional, and regressive taxation types.
Verified Answer
MV
Learning Objectives
- Ascertain and discriminate among progressive, proportional, and regressive taxation types.