Question

Progressive taxes are those that fall relatively more heavily on people with ______ incomes and regressive taxes are those that fall relatively more heavily on people with ______ incomes.

Answer 1

Progressive taxes fall more heavily on higher incomes, while regressive taxes fall more heavily on lower incomes.

Step-by-step explanation:

Progressive taxes are those that fall relatively more heavily on people with higher incomes and regressive taxes are those that fall relatively more heavily on people with lower incomes. Progressive taxes use a marginal tax rate to adjust to the various levels of income, meaning that as income increases, the tax rate also increases. This ensures that individuals with higher incomes pay a higher percentage of their income in taxes. On the other hand, regressive taxes, such as sales tax or excise taxes, are fixed percentages regardless of income. This means that individuals with lower incomes end up paying a higher proportion of their income in taxes compared to those with higher incomes.