Question

Regressive taxation, business subsidies, medicaid and food stamps are all examples of ________ because they shift income from one class of recipients to another

Answer 1

Regressive taxation, business subsidies, Medicaid, and food stamps are all examples of income redistribution policies because they shift income from one class of recipients to another.

A regressive tax is one where the common tax burden decreases with earnings. Low-income taxpayers pay a disproportionate percentage of the tax burden, even as center- and high-income taxpayers shoulder a particularly small tax burden.

Consequently, the chief examples of specific regressive taxes are those on goods whose intake society needs to discourage, inclusive of tobacco, fuel, and alcohol. These are regularly referred to as “sin taxes.” most economists agree that the regressivity or progressivity of any specific tax is of teen monetary importance.

A revolutionary tax is characterized via a more than proportional upward thrust inside the tax legal responsibility relative to the growth in income, and a regressive tax is characterized with the aid of a less than the proportional rise within the relative burden.

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