Taxation that allows higher-income people to pay less of their income on taxes than lower-income people is called:A.regressive taxation.B.indirect taxation.C.proportional taxation.D.progressive taxation.SUBMITarrow_backPREVIOUS
Question
Taxation that allows higher-income people to pay less of their income on taxes than lower-income people is called:A.regressive taxation.B.indirect taxation.C.proportional taxation.D.progressive taxation.SUBMITarrow_backPREVIOUS
Solution
The correct answer is A. regressive taxation. This type of taxation takes a larger percentage from low-income people than from high-income people. It is in real terms a decrease in the tax incidence of people with higher ability-to-pay, as it shifts the incidence increasingly to those with lower ability-to-pay.
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Income tax is a type of _____ tax.A.regressiveB.progressiveC.digressiveD.permissiveSUBMITarrow_backPREVIOUS
Which of the following best describes a progressive tax system?*1 pointAll taxpayers pay the same percentage of their income as taxHigh-income earners pay a smaller percentage of their income than low-income earnersHigh-income earners pay a larger percentage of their income than low-income earnersThe tax rate decreases as the taxpayer's income increases
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16 What describes a regressive tax?1 pointA It is paid by a higher proportion of high income earners.B It is paid by a higher proportion of low income earners.C It takes a higher proportion from high incomes.D It takes a higher proportion from low incomes.
The belief that cutting taxes for the rich will eventually result in economic benefits for the middle-class and the poor is commonly referred to as:Group of answer choicesPork barrel politicsKeynesian economicsTrickle-down economicsSocialism
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