BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -FLAT TAX–A tax applied at the same rate to all levels of income. It is often discussed as an alternative to the progressive tax.

Detailed explanation-2: -A progressive tax is characterized by a more than proportional rise in the tax liability relative to the increase in income, and a regressive tax is characterized by a less than proportional rise in the relative burden.

Detailed explanation-3: -Although individuals are taxed at the same rate, flat taxes can be considered regressive because a larger portion of income is taken from those with lower incomes. For example, a 6% sales tax on a $1000 computer ($60) would take a greater portion of a $10, 000 income than of a $50, 000 income.

Detailed explanation-4: -What Is a Regressive Tax? A regressive tax is one where the average tax burden decreases with income. Low-income taxpayers pay a disproportionate share of the tax burden, while middle-and high-income taxpayers shoulder a relatively small tax burden.

Detailed explanation-5: -According to Dalton, “In proportional taxation all the tax payers pay their taxes according to the equal proportion of this income”. Progressive Tax-Progressive tax system is a system in which not only the income increases as well as the rate of tax. Its principle is, “More income, more rate of tax”.