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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 allocation of income and wealth. A proportional tax is a tax that puts the same relative burden on every taxpayer—i.e., when tax liability and income move in relative proportion. A progressive tax is recognisable by a more than proportional rise in the tax onus [...]