The correct option is a): Regressive taxes place a higher burden on people who earn less compared to wealthier taxpayers. In regressive taxes, the government collects a higher level of taxes from the low-income earners and a comparatively lower level of taxes from the high-income earners.
- Regressive taxes place a higher burden on people who earn less compared to wealthier tax payers. Which sentence best describes a regressive tax? The correct option is this: REGRESSIVE TAXES PLACE A HIGHER BURDEN ON PEOPLE WHO EARN LESS COMPARED TO WEALTHIER TAX PAYERS.
What describes a regressive tax?
A regressive tax is one where the average tax burden decreases with income. Low-income taxpayers pay a disproportionate share of the tax burden, while middle- and high-income taxpayers shoulder a relatively small tax burden.
Which best describe a regressive tax?
Answer: D) The tax that charges raised-income earners a lower portion than low-income earners. Explanation: A regressive tax is commonly a tax that is applied equally, which means it affects lower-income individuals more, with regressive tax the rate of tax decrease as the income rise.
Which sentence best describes a regressive tax quizlet?
Terms in this set (10) Which sentence best describes a regressive tax? Regressive taxes place a higher burden on people who earn less compared to wealthier tax payers.
Which is an example of regressive tax?
regressive tax, tax that imposes a smaller burden (relative to resources) on those who are wealthier. Consequently, the chief examples of specific regressive taxes are those on goods whose consumption society wishes to discourage, such as tobacco, gasoline, and alcohol. These are often called “sin taxes.”
Which is an example of a regressive tax quizlet?
Sales tax would be an example of a regressive tax because people with higher incomes will spend more on things such as food and clothing causing them to pay more in sales tax than someone with a lower income who will spend less on clothing and food.
Where is regressive tax used?
Though true regressive taxes are not used as income taxes, they are used as taxes on tobacco, alcohol, gasoline, jewelry, perfume, and travel. User fees often are considered regressive because they take a larger percentage of income from low-income groups than from high-income groups.
What is a regressive tax quizlet?
Regressive tax. a tax for which the percentage of income paid in taxes decreases as income increases. Withholding. taking tax payments out of an employee’s pay before he or she receives it.
Which of the following best describes the circular flow model?
Which of the following best describes the circular flow model? The models represent the movement of money throughout the economy. What term is used in macroeconomics to describe the total supply and the total demand?
Is income tax a regressive tax?
The individual and corporate income taxes and the estate tax are all progressive. By contrast, excise taxes are regressive, as are payroll taxes for Social Security and Medicare.
Which best describes a regressive tax a tax that charges low-income earners a lower percentage than high-income earners?
It is correct because the regressive tax system refers to the method where the government charges taxes on individuals regressively, which means the opposite of the progressive tax system. The high-income earners will pay less tax than the low-income earners, which defines the regressive taxation method.
What is the main purpose of taxation quizlet?
The principal purpose of taxes is to control economic conditions. generate revenue for funding government programs. Money received in the form of dividends or interest is commonly called “earned income.”
Which describes an example of the economic system known as free enterprise?
Which describes an example of the economic system known as free enterprise? People are free to shop for the best price on products because there is open competition.
Are gas taxes regressive?
Another example of a highly regressive tax is the gas tax. Not only are most excise taxes regressive, but the gas tax is particularly so in that the poor and middle class are less likely to drive fuel efficient cars — and certainly not Teslas.
How do you use regressive in a sentence?
Examples of ‘regressive’ in a sentence regressive
- So it feels like a regressive step.
- The uniform age threshold is already highly regressive and raising it will make it more so.
- It has long been criticised as a regressive poll tax.
- He knows the difference between a progressive and a regressive tax.