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Proportional, Progressive, and Regressive taxes

8 July, 2010 (06:00) | Uncategorized | By: Randy Jones

Taxes are distinguished by the effect they have on the distribution of income and wealth. A proportional tax is the kind that imposes the same relative burden on every taxpayer—i.e., when tax liability and income increase in equal scale. A progressive tax is recognisable by a greater than proportional rise in the tax onus in [...]