Asked by Cassandra Randall on Jul 11, 2024
Verified
The burden of a regressive tax ________ as a percentage of income as income ________.
A) rises; falls
B) rises; rises
C) does not change; falls
D) does not change; rises
Regressive Tax
A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.
- Distinguish and identify the unique aspects of proportional, progressive, and regressive tax frameworks.
- Understand the relationship between income levels and the burden of different types of taxes.
Verified Answer
JM
Jordan McFannJul 15, 2024
Final Answer :
A
Explanation :
A regressive tax takes a smaller percentage of income as the income level increases, meaning the burden of a regressive tax rises as a percentage of income when income falls.
Learning Objectives
- Distinguish and identify the unique aspects of proportional, progressive, and regressive tax frameworks.
- Understand the relationship between income levels and the burden of different types of taxes.