Question

What is meant by a progressive tax?

A regressive tax?
A pro- portional tax?

Comment on the progressivity or regressivity of each of the following taxes, indicating in each case where you think the tax incidence lies:

(a) the Federal personal in- come tax

(b) a 4 percent state general sales tax

(c) a Federal excise tax on automobile tires

(d) a municipal property tax on real estate

(e) the Federal corporate income tax

(f) the portion of the payroll tax levied on employers

Answer 1

Progressive tax—A tax that takes a larger percentage of income from high-income groups than from low-income groups.

Regressive tax—A tax that takes a larger percentage of income from low-income groups than from high-income groups

A proportional tax is an income tax system where the same percentage of tax is levied on all taxpayers, regardless of their income.

Step-by-step explanation: