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Author Question: Briefly compare and contrast progressive, proportional, and regressive taxes. Give an example of a ... (Read 51 times)

Deast7027

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Briefly compare and contrast progressive, proportional, and regressive taxes. Give an example of a progressive tax and of a regressive tax.
 
  What will be an ideal response?

Question 2

What is fiscal policy? What are the primary tools of fiscal policy?
 
  What will be an ideal response?



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carojassy25

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Answer to Question 1

An ideal response will:
1, Explain that a progressive tax is one that takes a greater share of the income from the rich than the poorfor example, when a rich family pays 50 percent of its income in taxes, and a poor family pays 5 percent.
2, Provide an example of a progressive tax, such as income taxes. Explain why it is progressive.
3, Explain that a proportional tax takes the same share of income from everyone, rich and poor alike.
4, Explain that with a regressive tax, the burden falls relatively more heavily on low-income groups than on wealthy taxpayers, the opposite of a progressive tax, in which tax rates increase as income increases.
5, Provide an example of a regressive tax, such as a sales tax. Explain why it is regressive.

Answer to Question 2

An ideal response will:
1, Define fiscal policy as the government's use of taxation and spending policy to affect economic growth.
2, Explain how increasing or decreasing taxes speeds or slows economic growth.
3, Explain how increasing or reducing government spending affects the economy and the rate of unemployment.




Deast7027

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Reply 2 on: Jul 10, 2018
Gracias!


apple

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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