True Understanding Taxes 1 False 2. Discuss progressive taxes, regressive taxes, and proportional taxes. A regressive tax is the type of tax followed by the developing countries where a high amount of revenue is required for the countries developmental programs; this tax is straightforward to calculate as the tax amount is fixed for all the income range people and the income of the people in the less-developed countries will be almost similar, and income difference will be less when compared to … 4. Business, 11.01.2021 04:30 zacklofton6518. Why ‘Indirect Tax’ is considered as regressive taxation. Applying a flat-rate tax against something that's not an exactly-equal percent of each taxpayer's income gets you a progressive or regressive tax. d) None of the above. 1998/CE/IL'39 Taxable income f$\ 10 000 20 000 30 000 40 000 Which of the following statements about tax is correct? What is the correct statement about regressive taxation? Question 1. A sales tax on food is a regressive tax. is at on goo _ ds. A regressive tax is one that places a higher tax rate on upper income earners and a very low or nonexistent tax on very lower earners. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, so that the average tax rate exceeds the marginal tax rate. c. Social Security is a regressive tax. A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. New questions in Computers and Technology. You're paying a regressive tax if you pay the same percentage of your OC. Which one of the following is not a feature of “value added tax”? Any tax decreases their ability to afford these basics. Hillary Clinton led … a. The sales tax you pay when you fill your car up with gas is regress. Tax na cnt ($1 4 000 7 000 9 000 to 000 A. Pro,,ressive ta'\: has higher tax rate than regressive ta'(. “Regressive” describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, where the average tax rate exceeds the marginal tax rate. An excise tax is regressive in nature. The excise tax is an indirect tax where the tax is not paid by the consumers directly, but the tax is passed on the merchant or producers to the wholesalers, from wholesalers to retailers and from retailers to consumers indirectly. Regressive Tax. a) Progressive taxation combined with progressive expenditure. Regressive Tax: The government needs to raise the revenue necessary to provide services and they have several ways to go about generating that income. My guess regressive tax gains would and give to the proceeds to poor would: Cut down the number of people not born. D. A rental fee to use the Internet at a coffee house is a regressive tax. b) They are charged at higher rates than direct taxes. b. AdChoices. 3. Answers: 1 on a question: Which of the following statements is correct? Define a progressive tax from the screen. I anxiously await your "Guru's" ruling on whether a statement that a tax that is is both "regressive" and "not regressive" is either consistent or inconsistent. A regressive tax is a tax imposed in such a manner that the average tax rate decreases as the amount subject to taxation increases. 2.4 A tax is regressive when everybody pays the same amount of tax. You're paying a regressive tax if you pay the same percentage of your OC. There is no impact of regressive tax on the chemical engineer manufacture.D.A fast-food employee who works 40hours a week making minimum wage:This option is correct.This statement is correct. O A. Um, and so that is what's going to happen. (a) (i), (ii) are correct (b) (ii), (iii), (iv) are correct It committed the national government to a broad range of welfare activities. Indicate whether each of the following statements below is True or False. A rental fee to use the Internet at a coffee house is a regressive t. Answers: 1. (i) Black money refers to the unaccounted money. And having kids is consumption. O c. income in state income tax as a person who makes four times as. O c. income in state income tax as a person who makes four times as. b. Itemized deductions that are added back to regular taxable income for the alternative minimum tax are preference items. (iv) Unreporting income is a form of tax evasion. The correct answer is They are charged the same rates for all income groups. a) a major league baseball player b) a public school teacher with 25 years experience c) a chemical engineer for a major pharmaceutical manufacturer d) a fast food employee who works 40 hours a week making minimum wage Which of the following statements is correct? b) Progressive taxation combined with regressive expenditure. That is a lot more under $100K families than over $100 families and if you increase regressive taxes you are also increasing vastly in the middle. Progressive Tax. Because federal income tax is a (n)_____, Phil paid federal tax at a higher rate when his wages increased. A progressive tax is a tax that: Requires people who make more money to pay a larger percentage of their income in taxes. a. vertical equity is the idea that taxpayers with similar abilities to pay taxes should pay the same amount. Wealth taxes are fragile, because they fundamentally rely on information that is not basedonobservablearm’slengthtransactions. D. lump-sum tax. It was, according to Roosevelt, the “supreme achievement” of the New Deal. O A. See here, p.27. There is a direct impact of regressive tax on the fast-food employee. Yo had a part time job that paid you $950 in one tax year. answer choices. ... Regressive, and Flat Taxes. A flat tax is also referred to as a proportional tax. This kind of tax is a bigger burden on low-income earners than high-income earners. B. Your federal income tax is regressive. In lower-income families, a larger proportion of their income pays for shelter, food, and transportation. When companies are taxed, they will naturally choose to produce less of the product because they have to pay this tax. It provided old-age pensions. A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. B. Add your answer and earn points. Regressive Tax Definition. A regressive tax is a simple type of tax system to calculate tax which is levied on all the citizens of the country irrespective of their income. Here every citizen should pay the same amount of tax. This is called regressive because the higher income group pays less tax than the lower income group people. Earnings Tax. income in state income tax as a person who makes four times as much as you. Q. Your federal income tax is regressive. Pro;ressive tax is tax on income while n::gressive ta-. A regressive tax is one that imposes a harsher burden on lower-income households than on households with higher incomes. Question. Proportional Tax. What is the correct statement about regressive taxation? Correct answers: 2 question: Aregressive tax would negatively impact which of these people most? c) Regressive taxation combined with regressive expenditure. Fact-checking Bernie Sanders’ claim that Jim Kenney’s soda tax is regressive. John Moser (talk) 16:34, 29 August 2019 (UTC) 30 seconds. A regressive tax that may at first seem to be a fair form of taxation because everyone, regardless of income level, pays the same _____. You're paying a regressive tax if you pay the same percentage of. The sales tax you pay when you fill your car u … p with gas is regress You're paying a regressive tax if you pay the same percentage of O c. income in state income tax … The sales tax you pay. income in state income tax as a … I agree with the first statement wholeheartedly, but with the second only to an extent. From then on, in a progressive scheme, the tax due increases faster than taxable income. Accounting Individual Income Taxes Which of the following statements is most correct? Allow students enough time to write the definition on their copy of Activity 3, number 6a. Write your answer in the space provided. In the case of the sales tax, the same tax rate is applied by the governments uniformly to … Regressive taxes are defined as being less of a proportion of the income of the entity paying the tax as the entity's income increases. A regressive tax is a type of tax that is assessed regardless of income, in which low- and high-income earners pay the same dollar amount. A proportional tax is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases. The average tax rate equals the marginal tax rate. A regressive tax is a tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases. Saez and Zucman note that “wealth taxes are fragile”, but that “tax competition and tax evasion is a policy choice”. regressive when all taxpayers pay the same rate. Regressive taxes include fixed amounts of tax on each individual or household. Choose the correct statement. c) They are charged at lower rates than direct taxes. Jim Kenney’s proposed soda tax went national last week. a. 5. So most taxes in the economy do distort the economy. The sales tax you pay when you fill your car up with gas is regressive. You're paying a regressive tax if you pay the same percentage of. B. Sales Tax. If a tax doesn't meet this definition, it isn't regressive, and a discussion of how it is "regressive" compared to other taxes is meaningless. The correct amount of withholding will depend on the income earned from all of these jobs between both you and your spouse. Report an issue. The sales tax you pay when you fill your car up with gas is regress. 2. Mar 25 2021 05:48 PM. Asfast food employee earns less income, they have to pay more tax on this income. taxes follow a similar pattern. B. proportional tax. d. All the above are true statements. Rainyclouds Rainyclouds I don’t see statements,so I don’t know how to help you. "Regressive" describes a distribution effect on income or expenditure, referring to the way the rate progresses from high to low, so that the average tax rate exceeds the marginal tax rate. Just as Social Security can be considered a regressive tax, it's also a proportional tax because everyone pays the same rate, at least up to the wage base. Taxes assessed under a progressive system are based on the taxable amount of an individual's income. Visit site. The indirect taxes are paid by everyone if anyone buys any product irrespective of financial conditions. The Medicare tax, with no income limit, is a purely proportional tax. you. So the choice that is correct is Choi See, that caused a great loss. A flat tax is also a proportional tax. 1 See answer niniv is waiting for your help. Answer : c. Question 5 : Taxation is a means to redistribute income among various classes. (iii) Tax payer does not expect any direct benefit from direct taxes. A regressive tax system levies the same percentage on products or goods purchased regardless of the buyer's income and is thought to be disproportionately difficult on low earners. a) They are not charged the same for all income groups. In a good tax system, compliance costs are equal to administration costs. A redistribution of income tax can be best brought through. This can't happen because you start with an average tax rate of zero and a positive marginal tax rate. The social security tax is often called a regressive tax, but is a proportional tax on incomes up to $94,200. (ii) Taxation should be used as an instrument for controlling inflation. What is the correct statement about regressive taxation? However, the percent-age of total income paid to the tax falls as income rises above $94,200, making it weakly regressive. Regressive Tax Examples | Different Examples with Explanation A regressive tax is defined as a plan whereby the tax rate decreases with an increase in the taxable income. a) It is a method used to levy tax on … Use Slides 6-9. Regressive taxation is just opposite to the progressive method having decreasing rates of tax for increasing value or volume on which the tax is being imposed. Um, corrected taxes do not caused by a dead weight loss. III. Statement 1: The purpose of taxation may also be “compensatory”, meaning, it may be used to make up for the benefit received (i.e., excise tax on gasoline consumed by vehicle owners using roads) Statement 2: Taxes may be imposed for the equitable distribution of wealth and income in society. Solution.pdf. OD. 1. b. horizontal equity is the idea that taxes should be levied on a person according to how well that person can shoulder the burden. A regressive tax takes a smaller share of income from low-income groups than from high-income groups. A regressive tax is a type of tax that is levied regardless of income, in which low and high-income earners pay the same amount. It was a regressive tax that pinched the poor more than the rich. Choose the correct answer A. fixed amount B. income taxes C. user fees D. a greater proportion E. sales tax holidays It was based on a progressive tax that took a larger percentage of higher incomes. Tax preference items for the alternative minimum tax are always added back to regular taxable income. Which of the following statements about a regressive tax rate structure is from TAXATION 2010 at Miami Dade College, Miami Progressive taxation is actually characterized by the fact that the marginal tax rate exceeds the average one. C. regressive ta'\:. Display Slide 6.

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