ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Regressive tax
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Proportional Tax
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Flat Tax
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Progressive Tax
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Detailed explanation-1: -Under a regressive tax system, low-income earners pay a higher amount of taxes than high-income earners. Under a proportional tax system, low-, middle-, and high-income earners pay the same tax rate. Proportional tax is also called flat tax.
Detailed explanation-2: -The regressive tax rate line has a declining negative slope. The steeper the negative slope of the tax line, the more regressive the taxation. The degressive tax rate line has a rising slope initially, but it becomes constant after a point.
Detailed explanation-3: -Among many others, examples of a regressive tax include: Sales Tax. Property Tax. Excise Tax.
Detailed explanation-4: -What Taxes Are Considered Regressive? Regressive taxes are those that are paid regardless of income, such as sales taxes, sin taxes, and property taxes.