All categories

2 years ago

If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is

1 answer:

5 0

If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is Progressive tax.

<h3>What is meant by progressive taxes?</h3>

The average tax burden rises with income under a progressive tax. Low- and middle-income taxpayers bear a disproportionately tiny amount of the tax burden, compared to high-income families. A tax system that raises rates as taxable income rises is known as a progressive tax. Taxes on investment income, interest income, rental income, estates, and tax credits are a few examples of progressive taxes.

Based on the amount of tax you must pay relative to your income, taxes can be classified as regressive, proportional, or progressive. As your income declines, regressive taxes force you to pay a bigger proportion of your individual income in taxes. Tax reductions enhance people' discretionary income while reducing the government's revenue. Tax reductions typically refer to decreases in the percentage of income, commodities, and services subject to tax. Tax reductions serve as an illustration of an expansionary fiscal strategy since they give consumers greater discretionary income.

So, If, as your taxable income decreases, you pay a smaller percentage of your taxable income in taxes, then the tax is Progressive tax.

Learn more about Progressive tax here

brainly.com/question/1022789

#SPJ4

You might be interested in

The video suggests that a key challenge for Goodwill's marketers is to change the view of many consumers that secondhand stores

Nikolay [14]

Beliefs because that's what they think is correct in other words believe what is correct.

7 0

3 years ago

Read 2 more answers

Kline Construction is an all-equity firm that has projected perpetual EBIT of $320,000. The current cost of equity is 12.3 perce

miskamm [114]

Answer:

$1,879,215.61

Explanation:

Given that,

EBIT = $320,000

Current cost of equity = 12.3%

Tax rate = 40 percent

Value of perpetual bonds = $936,000

Annual coupon rate = 6.5 percent at par

Value of the unlevered firm:

= [EBIT × (1 - Tax rate)] ÷ Current cost of equity

= [$320,000 × (1 - 0.4)] ÷ 0.123

= $192,000 ÷ 0.123

= $1,560,975.61

Value of the levered firm:

= Value of the unlevered firm + (Tax rate × Value of perpetual bonds)

= $1,560,975.61 + (0.34 × $936,000)

= $1,560,975.61 + $318,240

= $1,879,215.61

4 0

4 years ago

In the late nineteenth century, what helped narrow the gradations of freedom amongst white Americans? a. Indentured servitude ha

ElenaW [278]

In the late nineteenth century, Judith Sergeant Murray wrote about women’s intellect being equal- this helped narrow the gradations of freedom amongst white Americans.

Option: B

Explanation:

In the late nineteenth century there was a conflict in between white Americans about the freedom. Their fight against each other graded by the help of writer and other professionals who wrote about their strong points. Judith Sergeant Murray who was an American writer and advocate wrote about women's right.

Gender discrimination, women's right, feminism was the core area of writing in Judith Sergeant Murray's work. He compared women's ability with man's, their imagination, decision making capacity, judgemental motives etc.

5 0

4 years ago

The lengths of service of all the executives employed by Standard Chemicals are:

Lilit [14]

Solution :

a). There are total 5 executives. Therefore the possible sample size of 2 is

$^nC_r=\frac{n!}{r!(n-r)!}$