1-1a Tax Rates Flashcards
1
Q
Progressive rates
A
- federal income tax
2
Q
Proportional tax rate
A
- state retail sales tax
- “flat tax”
- federal employment taxes (FICA & FUTA)
- excise taxes
3
Q
Regressive taxes
A
- national sales tax
- when the taxpayers ability to pay and the tax base are positively correlated
- taxes increase @ a decreasing rate
- FICA & FUTA taxes can be regressive if over the cap
