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Q: What are the classification of taxes?
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What is the classification and distinction of taxes?

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Describe the classification of taxes?

Taxes are classified as proportional, progressive or regressive. ÊProportional tax requires individuals to pay a fixed percentage of income no matter their level of income.ÊProgressive tax is one that increases with an increase in income, whereasÊregressive tax decreases asÊthe amount Êbeing taxed increases.


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