Locate an article that focuses on progressive and other types of tax systems. Answer whether you...

Locate an article that focuses on progressive and other types of tax systems. Answer whether you feel our system is fair. What alternative method would you propose?

Solutions

Expert Solution

Two kinds of taxes i.e. regressive & progressive.

1. The progressive tax is a tax which increases in proportion to increase in level of income of tax payer.

Example: The Tax slabs under direct taxation where tax rate increases with increase in income level.

Advantages

> It removes inequality by taking more tax from high-income group

> It is cost effective because no cost arises in the case of an increase in tax rate due to income level.

2. The Regressive Tax is a tax which remains same / independent to level of income.

Disadvantages

> It demotivates hard workers

> It leads to crime

Example: the indirect taxation. Like all of us pay same tax on Starbucks coffee despite income level.

Advantages

> There is no chances tax evasion in the case of indirect taxes.

> The burden of the tax falls equally on everyone without any distinction.

Disadvantages

> It is more harmful for poor section due to less purchasing power.

> It will lead to inequality i.e. increase the gap b/w rich and poor.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Step 1 - Locate a recent article that focuses on the ways in which the United...

Step 1 - Locate a recent article that focuses on the ways in which the United States deals with terrorism. Step 2 - Address the following in your article review: Summarize the main points of the article Explain your position on the topic. What is the difference between domestic and international terrorism? What sort of balance must the government's law enforcement apparatus maintain in terms of prosecuting terrorism cases while also respecting the Constitution and the privacy rights of citizens?

Discuss the three different types of taxations: a Regressive Tax; a Proportional Tax and a Progressive...

Discuss the three different types of taxations: a Regressive Tax; a Proportional Tax and a Progressive Tax discussion the burden of each tax on the taxpayer.

MPQ: Different Types of Taxes a. A progressive tax is one in which

MPQ: Different Types of Taxesa. A progressive tax is one in whichthe average rate increases as income increases.the average rate decreases as income increases.the average rate is constant as income increases.more taxes are paid as income increases.b. A regressive tax is one in whichthe average rate decreases as income increases.the average rate is constant as income increases.the same taxes are paid as income increases.the average rate increases as income increases.c. A proportional tax is one in whichthe average rate decreases...

Part (d)Is a tax on cigarettes a regressive tax or a progressive tax? Explain your answer,...

Part (d)Is a tax on cigarettes a regressive tax or a progressive tax? Explain your answer, including a definition of both terms .Part (e)Australia’s police forces and border forces have warned that rapid rises in the tax on cigarettes have had unintended consequences of encouraging illegal activity such as smuggling, with proceeds funding other criminal activities. Explain why this might be the case. In your answer refer to the role that elasticity of demand plays in making illegal activity more...

What are the three types of tax systems? What happens to the average tax burden as...

What are the three types of tax systems? What happens to the average tax burden as income increases in each of the systems? What are some examples of each type?

Locate and read the article listed below and answer the following questions. Hall, T. W., J....

Locate and read the article listed below and answer the following questions. Hall, T. W., J. E. Hunton, and B. J. Pierce. 2002. Sampling practices of auditors in public accounting, industry and govern- ment. Accounting Horizons 16 (2): 125–136. http://www.aaajournals.org/doi/pdf/10.2308/acch.2002.16.2.125 The issue that is being addressed in the paper is to understand : (1) how they determine sample size (2) how the sample are selected and (3) how the selected samples are evaluated So my question is..can someone summarise it...

On the internet, search a topic that focuses on Team Building in Business,Choose an article you...

On the internet, search a topic that focuses on Team Building in Business,Choose an article you like based on an industry in business, then write your article review using the listed headings (below). Summarize the articles, providing details and ALSO, give your response to the articles - do you agree with the writer? Was the information useful?

Question