Asked by Grace Damico on Jul 20, 2024
Verified
What is the difference between progressive tax and regressive tax?
Progressive Tax
A taxation system in which the tax rate increases as the taxable amount or income increases, commonly seen in income tax systems to ensure higher earners contribute a greater proportion of their income.
Regressive Tax
A tax system in which the tax rate decreases as the taxable amount increases, disproportionately affecting lower-income individuals.
- Discern between means-tested benefits, entitlement schemes, tax expenditures, and their influence on fiscal policy decisions.
Verified Answer
CF
Casandra FrancoisJul 27, 2024
Final Answer :
Students' answers may vary.
Progressive taxes take a higher proportion of income as income rises, whereas regressive taxes take a higher proportion of income from lower income earners.
Progressive taxes take a higher proportion of income as income rises, whereas regressive taxes take a higher proportion of income from lower income earners.
Learning Objectives
- Discern between means-tested benefits, entitlement schemes, tax expenditures, and their influence on fiscal policy decisions.