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2009-03-02 16:22:02
2009-03-02 16:22:02

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

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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.


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.


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?


The federal personal income tax is an example of progressive tax.


The Federal income tax is a progressive tax because the more a person makes in revenue, the more tax they will have to pay. The tax level or percentage is higher for those with a higher income, too.


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.


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


It depends on how the tax is structured. For example many many consider sales or gasoline taxes as regressive, because for low income groups -- it takes a higher percentage of their income to pay it. In the USA our income tax system is progressive, if you make more -- you pay a higher higher tax rate. (%). Please note, this is a simple answer to a complex question.


The medicare tax is 1.45% of income (with another 1.45% paid by the employer). This same tax rate applies to every dollar of income, hence it is proportional. It's also regressive - it impacts low-income wage earners more than high-income wage earners.


Depends on who you talk to.


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). .


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.


A Regresssive tax system is when a larger percantage frome the income from low-income people than the income of high-income people


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.



Progressive regressive and proportional 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.


Under a regressive tax your tax rate goes down as you make more money. (Total Tax Paid) / (Income) = (Percent of income paid). As the tax rate goes down, the more you make the lower this number will be.


A tax is called regressive if the tax rate is higher on persons of lower income or wealth than on those of higher income or wealth. A lack of reliable electricity has had a regressive impact on the use of technology in the Third World.


The 16th Amendment was a progressive reform that authorized a federal income tax.


There are two types of tax that is related to income equality: Regressive tax: The tax as a percentage of your income decrease as your income rises. Example includes VAT (Value Added Tax) where the burden of the tax falls more heavily onb the poor than to the rich. Therefore it increases the income inequality. Progressive tax: The tax as a percentage of your income increases as your income rises. Example includes income tax where as your income rises, the tax percentage increases. Therefore, it creates more income equality.


Progressive Tax: The progressive tax system is commonly used throughout the world and to the average consumer is seen as "fair". In one way it may seem as a pro to the government as the more wealthy individuals there are in a society the higher the revenue of income tax. Although, this may be true, some arguments against this tax system are that it encourages the wealthy to immigrate to a country where the tax rate for high-net-worth individuals is lower and it also discourages individuals to work to gain higher incomes. Regressive Tax: Few countries around the world employ the Regressive tax system. Regressive tax systems are favored by those who make a large income because a small proportion of their income is taxed. It is an incentive for many high net worth individuals. From a government point of view, the wealthy individuals have more disposable income to invest within the economy namely capital goods which in turn would stimulate it. On the other hand, those who make moderate or lower incomes have to pay a higher percentage of their income in taxes. A disincentive for low income earners.


federal income tax people


It would depend on the type of structure of the taxation. Take Mr. Cain's 999, it is an expample of a regressive taxation princeple. The higher income folks pay less and the middle and poor pay more. Study it, you will see.


There is no particular year recorded when Regressive tax was first introduced. This is due to the fact that it is a uniform tax that affects low and high income earners equally.



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