ECONOMICS
FISCAL POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
____ take a higher percentage of tax from higher incomes.
|
|
|
____ won’t redistribute wealth.
|
|
|
____ don’t include UK income tax.
|
|
|
____ are always unpopular.
|
Detailed explanation-1: -In a progressive tax system, high earners pay a higher tax rate than low earners.
Detailed explanation-2: -Definition: Progressive tax is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases. A higher tax is collected from the taxpayers who earn more and lower taxes from taxpayers earning less. The government uses a progressive tax mechanism.
Detailed explanation-3: -2022 Tax Brackets (Taxes Due in April 2023) For the 2022 tax year-and the return you’re filing in 2023-there are seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
Detailed explanation-4: -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.