Economy, asked by ravigami5573, 4 months ago

explain progressive, regressive and proportional tax.​

Answers

Answered by mannan26
1

Answer:

percentage of income from high-income groups than from low-income groups. proportional tax—A tax that takes the same percentage of income from all income groups. regressive tax—A tax that takes a larger percentage of income from low-income groups than from high-income groups.

Explanation:

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Answered by IshaanAmay1234
1

Answer:

Understanding Taxes 1

Worksheet Solutions Comparing Regressive, Progressive, and Proportional Taxes

Theme 3: Fairness in Taxes

Lesson 5: How Taxes Affect Us

Key Terms

progressive tax—A tax that takes a larger percentage of income from high-income groups

than from low-income groups.

proportional tax—A tax that takes the same percentage of income from all income groups.

regressive tax—A tax that takes a larger percentage of income from low-income groups

than from high-income groups.

vertical equity—The concept that people in different income groups should pay different

rates of taxes or different percentages of their incomes as taxes. “Unequals should be taxed

unequally.”

Summary

In the United States there are progressive income taxes and regressive Social Security and

property taxes. Excise taxes and user fees are somewhat regressive. This combination

results in taxpayers paying roughly the same percentage of their incomes in taxes, creating a

proportional system. Vertical equity is the concept that people in different income groups

should pay different rates of taxes.

Activity 1

Complete the line graphs to compare how a regressive tax, a progressive tax, and a

proportional tax affect different income groups.

1. Plot the curve on the graphs by joining the dots.

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