Asked by Kiana Moore on May 06, 2024
Verified
An average tax rate of 20 percent on the poor and 1 percent on the rich would be
A) progressive.
B) proportional.
C) regressive.
Progressive
A political and social philosophy advocating for reform and improvements in social justice, welfare, and the protection of civil liberties.
Regressive
A term describing a tax system where the tax rate decreases as the taxable amount increases, disproportionately affecting those with lower incomes.
- Comprehend the various forms of taxes, including proportional, progressive, and regressive, along with their effects.
Verified Answer
DS
DR.SEEMA SHARMAMay 08, 2024
Final Answer :
C
Explanation :
A regressive tax system is one in which the tax rate decreases as the income or wealth of the taxpayer increases. In this situation, the poor are being taxed at a higher percentage of their income than the rich, which is regressive. A progressive tax system, on the other hand, is one in which the tax rate increases as the income or wealth of the taxpayer increases. A proportional tax system is one in which the tax rate is the same for all taxpayers, regardless of income or wealth.
Learning Objectives
- Comprehend the various forms of taxes, including proportional, progressive, and regressive, along with their effects.