- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
- Posts
A tax which is charged at 10% on the cost of domestic heating and which is collected by being added to all heating bills would be: 1-A proportional tax
2- A regressive tax
3- A direct tax
4-A progressive taxthe answer is 2( Regressive because it hits the poor relatively harder).
can you explan further please .
why not proportional tax ?because they say in question 10% on cost (ie fixed percentage) for everyone ,as i think. & they didn’t say different percentages for specific category or something like that.thank you .
The terms proportional, regressive and progressive usually refer to the effect of tax on taxpayers. Hence a fixed rate sales tax is regressive with respect to taxpayers even if it is proportional with respect to the value of sales.
The question could be better worded by specifying it was referring to the effect on taxpayers.
- You must be logged in to reply to this topic.