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AnnyKZ [126]
2 years ago
15

Match each example with the type of tax it represents.

History
1 answer:
valkas [14]2 years ago
7 0

Answer:

1. Progressive taxation: Citizen A pays 20% on $50,000 and Citizen B pays 15% on $36.000.

2. Proportional taxation: Citizen A pays 10% on $50,000 and Citizen B pays 10% on $36,000.

3. Regressive taxation: Citizen A pays 15% on $50,000 and Citizen B pays 20% on $36,000.

Explanation:

Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.

There are three (3) types of taxation used by the government, these are;

1. Progressive taxation: it involves charging individuals having higher incomes a higher percentage of their total income.

For instance, Citizen A pays 20% on $50,000 and Citizen B pays 15% on $36.000.

2. Proportional taxation: it involves charging both lower and higher income earners equally in proportion to their income.

For instance, Citizen A pays 10% on $50,000 and Citizen B pays 10% on $36,000.

3. Regressive taxation: it involves charging individuals with low incomes a higher percentage of their total income and vice-versa.

For instance, Citizen A pays 15% on $50,000 and Citizen B pays 20% on $36,000.

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