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Excise taxes are regressive taxes. Say a rich person and a poor person buy the same amount of cigarettes and pay the same cost (the excise tax does not change with income level). The tax assesed on the cigarettes represents a larger percentage of the poor person's income than the rich person's income, hence a regressive tax model.
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Is the sales tax progressive or regressive?
regressive
Is payroll tax regressive or progressive?
Regressive
Is an income tax a progressive shared proportional or regressive tax?
progressive shared
Is a tax where everyone pays the same percentage a regressive or progressive tax?
Neither, a tax in which everyone pays the same percentage is called a flat tax.
What kind of tax is the sales tax?
Regressive tax
Is payroll tax regressive or progressive?
Regressive
Is the sales tax progressive or regressive?
regressive
Is inheritance tax progressive or regressive?
Progressive
Is an income tax a progressive shared proportional or regressive tax?
progressive shared
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.
Is the federal income tax proportional progressive or regressive?
The federal income tax is progressive A tax that charges more for higher incomes
Is the federal gift tax progressive or regressive?
Homework questions are really best answered by referring to your class materials. What is the definition of progressive VS regressive...and how is the gift tax applied?
What is the advantage of 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.
Is a tax where everyone pays the same percentage a regressive or progressive tax?
Neither, a tax in which everyone pays the same percentage is called a flat tax.
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 the difference between progressive and regressive taxation?
In a progressive tax, the more you earn, the higher your tax rate.In a regressive tax, the less you earn, the higher your tax rate.The classical progressive tax is income tax.The classical regressive tax is sales tax.
A tax on perfume is an example of what?
A tax on perfumeA tax on perfume is an example of an excise tax. Excise taxes are indirect taxes on certain types of goods.
