Question

Which of the tax structures do you think is most fair? Why? (See p. 360–362 of Economics: Principles in Actions for review). Give at least two details to support your answer

Answer 1

Answer:

The most fair tax structure is progressive taxation.

Explanation:

Progressive taxation is the tax structure in which the higher the income of an individual, the higher the rates of taxation that person is subjected to.

This system is seen as the most fair by most individuals, including economists, because it is to be expected that people who make a lot of money pay a larger amount of taxes than people who make less.

For this reason, the majority of countries in the world use a progressive tax system.