Question

A tax is called __________ if the rate of taxation goes up with each higher income bracket and __________ if people in lower income brackets pay a higher proportion of their income toward the tax than people in higher income brackets.

Answer 1

Answer:

Progressive

Regressive

Explanation:

A progressive tax is when people who are in the higher income bracket pay more tax. In a progressive tax, tax rate increase as income increase.

A regressive tax is when people in the lower income bracket pay more tax. In a regressive tax, tax rate decrease as income increase.