Progressive, Proportional, and Regressive Taxes Flashcard

Front

What is the definition of a progressive tax?

Back

A tax system in which the tax rate increases as the taxable amount increases.

Front

What is the definition of a regressive tax?

Back

A tax that takes a larger percentage of income from low-income individuals compared to high-income individuals.

Front

Which of the following is an example of a progressive tax? Flat tax system in the United States, Income tax system in the United States, Sales tax system in the United States, Property tax system in the United States

Back

Income tax system in the United States

Front

Which of the following is an example of a proportional tax? Value-added tax, Regressive tax, Progressive tax, Flat tax

Back

Flat tax

Front

Which of the following is an example of a regressive tax in its effect? Sales tax, Excise tax, Property tax, Income tax

Back

Sales tax

Front

In a progressive tax system, what happens to the tax rate as the taxable income increases?

Back

The tax rate increases

Front

In a regressive tax system, what happens to the tax rate as the taxable income increases?

Back

The tax rate decreases.

Front

Which type of tax places a higher burden on low-income individuals compared to high-income individuals? Options: Flat tax, Regressive tax, Progressive tax, Excise tax

Back

Regressive tax

Front

Which type of tax places an equal burden on all individuals regardless of their income level in terms of the same amount charged? Options: Progressive tax, Regressive tax, Income tax, Flat tax

Back

Flat tax

Front

Which type of tax places a higher burden on high-income individuals compared to low-income individuals?

Back

Progressive tax