Progressive Tax vs. Regressive Tax
Question
Explain the difference between a progressive tax and a regressive tax.
Category:
Taxation
Frequently asked question
Preview Answer
I. 🍃Introduction
- Definition of progressive and regressive taxes
- Importance of understanding the difference between the two
II. Progressive Tax
- Explanation of how a progressive tax works
- Impact on the income of the rich
- Impact on income distribution
- Example of a direct tax that is progressive
III. Regressive Tax
- Explanation of how a regressive tax works
- Impact on the income of those on low income
- Impact on income distribution
- Example of an indirect tax that is regressive
IV. Comparison of Progressive and Regressive Taxes
- Differences in impact on income distribution
- Differences in impact on different income groups
- Importance of considering both types of taxes in creating a fair tax system
V. 👉Conclusion
- Recap of key points
- Importance of understanding the impact of taxes on income distribution and inequality.
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