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What is proportional tax and what is regressive tax and an example of each?
Wiki User
∙ 15y ago
A tax that charges more to those with lower incomes
Wiki User
∙ 15y ago
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Why is a 5 percent sales tax on gasoline regressive?
This is a fixed rate (proportional) tax, not a regressive tax.
A regressive tax is BEST defined as a rate of tax?
A regressive tax is a rate of tax that falls as the income rises.
What is the principle that justifies a regressive tax?
The benefits-received principle justifies a regressive tax.
What is the advantage of regressive tax?
regressive tax encourages earning. this is such that as for the case of progressive tax whereby the more you earn, the more taxes you pay in the case of regressive tax, the more you earn the more you get to keep.
What countries practicing regressive tax?
the countries practicing regressive tax are japan, united states, china, Canada and Korea.
Why is a 5 percent sales tax on gasoline regressive?
This is a fixed rate (proportional) tax, not a regressive tax.
Is an income tax a progressive shared proportional or regressive tax?
progressive shared
Is the federal income tax proportional progressive or regressive?
The federal income tax is progressive A tax that charges more for higher incomes
Is social security a regressive or proportional tax?
Social Security Taxes are a Proportional Tax. A Percentage of a person's income is paid to Social Security, this is half of the total amount paid to them, the Other half of a person's Social Security Tax is paid by the Employer.
Is payroll tax regressive or progressive?
Regressive
Is the sales tax progressive or regressive?
regressive
A regressive tax is BEST defined as a rate of tax?
A regressive tax is a rate of tax that falls as the income rises.
Distinguish between proportional tax and progressive tax?
A proportional tax takes the same percentage of income no matter your income level. A progressive tax, on the other hand, takes a larger percentage of income as your income increases. An example of a proportional tax is the Medicare tax (everyone pays 1.45% of all income), while the U.S. income tax is an example of a progressive tax (higher incomes get bumped into higher tax brackets). Many people believe sales taxes to be proportional because everyone pays the same rate, but because sales taxes only apply to spending rather than overall income they almost always turn out to be regressive.
What is the principle that justifies a regressive tax?
The benefits-received principle justifies a regressive tax.
Proportional Progressive Regressive Which one should be adopted into the US and why?
This question is totally a matter of opinion. Most economists say that a progressive tax structure is the most effective while some others suggest that a proportional is not only better, but also more moral. Almost every economist would agree that a totally regressive tax structure is bad.
Your department store receipt says that you paid a 5% sales tax on sports equipment. This sales tax is an example of a _____.?
regressive tax
What is the advantage of regressive tax?
regressive tax encourages earning. this is such that as for the case of progressive tax whereby the more you earn, the more taxes you pay in the case of regressive tax, the more you earn the more you get to keep.
