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A regressive tax is a rate of tax that falls as the income rises.
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∙ 9y ago
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Why is a 5 percent sales tax on gasoline regressive?
This is a fixed rate (proportional) tax, not a regressive tax.
Why are some taxes considered to be regressive?
A tax is regressive if every member of the society has an equal burden of paying, despite wealth and income levels. The sales tax is considered regressive because everyone, from the wealthiest to the most destitute, pay the same rate.
What is the principle that justifies a regressive tax?
The benefits-received principle justifies a regressive tax.
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.
What countries practicing regressive tax?
the countries practicing regressive tax are japan, united states, china, Canada and Korea.
Why is a 5 percent sales tax on gasoline regressive?
This is a fixed rate (proportional) tax, not a regressive tax.
With this tax the tax rate decreases as the tax base increases?
Regressive
With this tax the tax rate decreases as the tax base increases.?
Regressive
Tax rate decreases as tax base increases?
Regressive
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 type of tax is one in which the rate of tax doesn't change with a change in the tax base?
regressive
With this tax the tax rate decrease as the tax base increases?
A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases.
Who would pay the most as a portion of income under a regressive tax?
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.
Why are some taxes considered to be regressive?
A tax is regressive if every member of the society has an equal burden of paying, despite wealth and income levels. The sales tax is considered regressive because everyone, from the wealthiest to the most destitute, pay the same rate.
What is the name of the tax where everyone is taxed the same?
This type of tax is a called a 'flat' rate tax. This means that everyone must pay the same percentage of tax, but how much you actually pay depends on income and usage levels.
How do you use the word regressive in a sentence?
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.
Is payroll tax regressive or progressive?
Regressive
