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Proportional, Progressive, and Regressive taxes

8 July, 2010 (06:00) | Uncategorized | By: The Chief Technology Officer

Taxes can be distinguished by the effect they have on the distribution of income and wealth. A proportional tax is a tax that impinges the same relative burden on all the taxpayers—i.e., in the case where tax liability and income move in the same scale. A progressive tax is characterized by a greater than proportional [...]