Author Question: What are the different types of tax systems? Give one example of each type of tax. What will be ... (Read 53 times)

clippers! · **on:** Jun 29, 2018

What are the different types of tax systems? Give one example of each type of tax.

What will be an ideal response?

Question 2

An economy can achieve faster economic growth without ______.

A. markets and property rights
B. people being willing to save and invest
C. incentives to encourage the research for new technologies
D. an increase in the population growth rate

ktidd · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

In progressive tax systems, higher income levels face higher average tax rates. In a proportional tax system, households pay the same percentage of their incomes in taxes regardless of their income level; in other words, the average tax rate does not vary with income. In a regressive tax system, the average tax rate declines with income so that low-income households pay a greater percentage of income in taxes than do high-income households. In the United States, income taxes (except flat-rate state and local income taxes) are progressive. Social Security and sales taxes are regressive.

Answer to Question 2

D The other answers are necessary conditions for economic growth.