Asked by Shontae Stallworth on May 21, 2024
Verified
Using income as the tax base, which of the following best illustrates a regressive tax?
A) the federal inheritance tax
B) a 7 percent general sales tax
C) the corporate income tax
D) the personal income tax
Regressive Tax
A tax levied at a rate that decreases as the taxpayer's income increases, placing a heavier burden on low-income individuals.
Federal Inheritance Tax
A tax imposed by the federal government on the transfer of estate from a deceased person to their beneficiaries or heirs.
General Sales Tax
A tax imposed on sales transactions, usually calculated as a percentage of the selling price of goods and services.
- Acquire comprehension of the basic principles and forms of tax regimes, encompassing regressive, progressive, proportional, and benefits-received taxes.
- Recognize the intentions and repercussions of distinct taxes, for instance, excise taxes and sales taxes.
Verified Answer
Learning Objectives
- Acquire comprehension of the basic principles and forms of tax regimes, encompassing regressive, progressive, proportional, and benefits-received taxes.
- Recognize the intentions and repercussions of distinct taxes, for instance, excise taxes and sales taxes.
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