Taxes and Tax Preparation

Is an Excise Tax a regressive tax or progressive tax?

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2009-12-10 05:48:26
2009-12-10 05:48:26

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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Related Questions


A progressive method is one in which the [marginal] rate of tax increases as the amount that is subject to taxation increases. A regressive method is one in which the rate decreases as the amount increases. A regressive tax system takes proportionately more money in tax from somebody on a lower income than someone on a higher income.

The federal income tax is progressive A tax that charges more for higher incomes

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.

Progressive tax means people with higher income are taxed at a higher percentage. Regressive tax means people with higher income are taxed at a lower percentage.

Depends on who you talk to.

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?

No; a cigarette tax is regressive tax because spending on cigarettes takes a percentage of money out of the total the consumer pays.

Neither, a tax in which everyone pays the same percentage is called a flat tax.

Progressive regressive and proportional tax

A regressive tax is a rate of tax that falls as the income rises.

This is a fixed rate (proportional) tax, not a regressive tax.

In a classical system, you have regressive, progressive and proportional. There are different types of taxes as well (e.g. income tax, luxury tax, property tax). .

The benefits-received principle justifies a regressive tax.

regressive indirect

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.

A tax on perfume is an excise tax. An excise tax is an in-country, or inland, tax on a specific good produced for sale. If the tax is on the perfume as it is imported, it is a customs duty or border tax.

alcohol cigarettes and items like that are taxed with and excise tax

the tax levied on gasoline is known as an excise tax.

That could be a stamp tax, conveyance tax or excise tax.

Study island: It is a regressive tax. Citizens of a country are charged certain levies indirectly, commonly known as indirect taxes. These are the taxes payable on an activity or a commodity. Some common examples of indirect taxes are sales tax and excise tax.

the countries practicing regressive tax are japan, united states, china, Canada and Korea.

a tax on certain products


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