MANAGEMENT

Detailed explanation-1: -A progressive tax is a tax where the tax rate increases with increase in the taxpayer’s income. Here, individual who get high income pay higher proportion of there income as tax. On the other hand, in the case of regressive tax, tax rate decreases with increase in income.

Detailed explanation-2: -progressive tax-A tax that takes a larger percentage of income from high-income groups than from low-income groups. proportional tax-A tax that takes the same percentage of income from all income groups. regressive tax-A tax that takes a larger percentage of income from low-income groups than from high-income groups.

Detailed explanation-3: -Progressive taxes have graded tax rates, meaning that the rich pay taxes at higher rates; an example is the American federal income tax. Regressive taxes are taxes that impose a higher percentage rate of taxation on low incomes than on high incomes; a technical example would be sales tax.

Detailed explanation-4: -The differences between progressive and regressive tax can be drawn clearly on the following grounds: The progressive tax is a taxing mechanism wherein, the tax rate rises with the rise in the taxable amount. Regressive Tax is a tax system in which the tax rate falls with the increase in the amount subject to tax.