CHAPTER 73 REDISTRIBUTION OF INCOME AND WEALTH

Question 1

Progressive tax

Answer 1

A tax where the higher the income of the taxpayer, the larger the proportion of income is paid in tax.

Question 2

Proportional tax

Answer 2

A tax where as the income of taxpayers increases, the same proportion of income is paid in tax.

Question 3

Regressive tax

Answer 3

A tax where the higher the income of the taxpayer, the smaller the proportion of income is paid in tax.