USA HISTORY

Detailed explanation-1: -Whom Did They Benefit the Most? The largest benefits from the Bush tax cuts flowed to high-income taxpayers. From 2004-2012 (the years for which comparable estimates are available), the top 1 percent of households received average tax cuts of more than $50, 000 each year.

Detailed explanation-2: -A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term “progressive” refers to the way the tax rate progresses from low to high, with the result that a taxpayer’s average tax rate is less than the person’s marginal tax rate.

Detailed explanation-3: -In regressive taxation, there is an inverse relationship between the taxpayer’s ability to pay and the rate of tax. In simple words, regressive taxation puts more burden on the people with low levels of income. Indirect taxation is generally regressive is nature.