Income Tax Structures

How many Income Tax Structures are there?

• 1

• 5

• 4

• 3

What term describes a tax structure where the proportion of income paid in taxes decreases as income increases?

• Progressive Tax

• Regressive Tax

• Flat Tax

• Proportional Tax

The principle of ______________ involves taxing individuals at higher rates as their income increases, aiming to achieve greater income ______________.

• Flat Tax, Neutrality

• Progressive Tax, Redistribution

• Proportional Tax, Equality

Regressive is a tax strategy where higher-income individuals pay a lower percentage of their income in taxes, often criticized for widening income inequality.

• True

• False

A progressive tax structure imposes the same tax rate on all income levels, promoting a consistent percentage of income paid in taxes.

• True

• False