Question

Why can some taxes that appear to be regressive in terms of current income be thought of as progressive from a lifetime tax incidence perspective?

Answer 1

The description is outlined in the clarification segment below, as per the case provided.

Step-by-step explanation:

• The prevalence of either a lifetime tax on some kind of fixed income has been known to be a long-term perspective including its broader economic impact of taxation since they complement instead of just replace.
• The existing income taxes would raise the quarterly funds to meet, but perhaps the cumulative occurrence of tax would enhance the power to charge for existence.