Cryptocurrency Q&A
What is the difference between a progressive tax and a regressive tax?
What is the difference between a progressive tax and a regressive tax?
Stefano
Wed Jan 22 2025
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5
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I want to understand the difference between a progressive tax, where people with higher incomes pay a larger percentage of their income in taxes, and a regressive tax, where lower-income individuals pay a higher percentage of their income in taxes.
5 answers
IncheonBeautyBloom
Fri Jan 24 2025
On the other hand, proportional tax operates on the principle of taking the same percentage of income from all income groups regardless of their financial status.
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DongdaemunTrendsetterStyleIcon
Fri Jan 24 2025
This system ensures that everyone pays tax at the same rate, but it may not fully address issues of income inequality.
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KatanaSharpened
Fri Jan 24 2025
Progressive tax is a taxation system designed to impose a larger percentage of income on high-income groups compared to low-income groups.
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DigitalDynastyQueen
Fri Jan 24 2025
Regressive tax, in contrast, takes a larger percentage of income from low-income groups than from high-income groups. This can lead to a situation where those with less financial means are burdened disproportionately.
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amelia_doe_explorer
Fri Jan 24 2025
This type of tax is believed to be more equitable as it requires those with greater financial means to contribute more to public finances.
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