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What is the tax stratagy where the consumer pays a higher tax rate as income increases?
Wiki User
∙ 14y ago
a "progressive tax" A "progressive" tax system.
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Wiki User
∙ 14y ago
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In which taxation strategy does the consumer pay a higher tax rate as income increases?
progressive.
In which strategy the consumer pays a higher tax rate as income increases?
progressive tax [novanet]
What type of tax strategy makes consumer pay higher tax rate as income increases?
A progressive tax strategy.
What is the income elasticity of an inferior good?
goods whose demand falls as consumer income increases
How does consumer income affect the demand for normal goods?
A good that decreases in demand when consumer income rises; having a negative Income increases will thus affect the consumption of these goods.
What taxes do consumers pay a higher tax rate on when their income increases?
Progressive ______________ Income taxes will have a higher rate. Many other taxes, or more correctly tax benefits, may be limited or eliminated.
What is a progressive tax strategy?
it is tha strategy that governs tax increases proportionally with taxable income. the higher your taxable income the higher tax percentage you will pay.
What is the income consumption curve?
Income Consumption curve (icc) is a curve which determine the consumption of a consumer base on in his/her income When Income is High, Spending Capacity increases, higher the spending capacity - more the demand. Thus converse to the original demand theory which says, PRICE determines Demand, ICC theory says, INCOME of a PERSON determines the Demand for a Product
What tax strategy makes you pay a higher tax rate as income increases?
This is called a graduated or progressive income tax.
Is it microeconomics or macroeconomics the effect of higher income taxes on total amount of consumer spending?
microeconomics
What is the difference between a progressive tax and regressive tax?
A progressive tax is defined as a tax whose rate increases as the payer's income increases. That is, individuals who earn high incomes have a greater proportion of their incomes taken to pay the tax.A regressive tax, on the other hand, is one whose rate increases as the payer's income decreases.
What is Keyne's psychological law of consumption and empirical evidence?
the psychological law of consumption states that as the income of the consumer goes on increaing the consumotion also increases but at a rate which is lessthan incrase in income
