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Proportional, Progressive, and Regressive taxes

8 July, 2010 (06:55) | Uncategorized | By: The Group Captain

Taxes are distinguished by the effect they have on the allocation of income and wealth. A proportional tax is one that impinges the same relative requirement on every taxpayer—i.e., when tax liability and income increase in the same proportion. A progressive tax is characterized by a more than proportional rise in the tax onus in [...]