Question

Do you think the impacts of the following government programs are progressively, regressively or proportionally distributed relative to income levels? Explain separately for each program.

1. Control of automobile emissions and pollution.

b. Control of quality of public water treatment and supply systems.

Answer 1

Answer:

The Governement of the U.S to bring the social equity among its citizens decides Tax rates on individuals.Tax rates could be of the three types .

One is regressively where Buyer of goods has to pay a certain % of tax of Goods cost Example:-Excise Duty , custom Duty,GST indirect Tax . This is more burden to the lower income group rather than the rich as irrespective of income one earns he has to pay same level of taxes Hence big burden on Poors.

Second is Proportionately This tax policy charges flat Tax Example 10 % .It encourage to invest more and more as now it is equal to Lower , middle , rich to pay tax at same level .

Third is Progressively where The more you earn , the more you are taxed by the government .Taxations are many slabs .Example income upto $ 1000 Tax free and thereafter upto 10000 $ 10 % Tax and thereafter 20% Tax upto 30000 $.This Tax structure discourages more to earn as more you earn more % of tax you are liable to pay with it .

The Government By programs below have impacted too :-

1. Control of automobile emissions and pollution. :-

This program has not been significant impacting .It mainly is effecting the middle men and Higher income individual .The more you earn , the more you pay .hence progressively distribution of income .

2.Control of quality of public water treatment and supply systems. ::

The program is impacting the all the three groups lower income middle income , higher income one proportionately . The more you use the more you has to pay for it proportionately.distributing to the level of income .Flat tax is charged from the everyone as per use .