All categories

3 years ago

Highlight the difference between progressive and regressive tax.

Business

1 answer:

Misha Larkins [42]3 years ago

4 0

Answer:

see below

Explanation:

A progressive tax system imposes taxes depending on income earned. The higher the income, the higher the tax rate. It means individuals and entities with a higher income with pay more taxes. A progressive tax system promotes equity by imposing higher taxes on the wealthy and lower taxes on the poor. The US income tax system is an example of a progressive tax.

A regressive tax system does not discriminate on income. It taxes all eligible taxpayers equally regardless of their income level. A regressive tax applies the same tax rate for everyone. Sale tax imposed on goods sold is an example of regressive tax. The regressive tax system takes a higher proposition of income from the low-income earners.

You might be interested in

he following information was drawn from the accounting records of Chapin Company. On January 1, Year 1, Chapin paid $56,000 cash

ololo11 [35]

Answer:

a. Record the year-end adjusting entry for depreciation expense on the truck in T-accounts.

December 31, 202x, accrued depreciation expense on truck

Dr Depreciation expense 10,000

Cr Accumulated depreciation - truck 10,000

b. Determine the book value of the truck that will appear on the December 31, Year 1, balance sheet.

Truck $46,000

c. Record the year-end adjusting entry of uncollectible accounts expense.

December 31, 202x, allowance for doubtful accounts

Dr Bad debt expense 16,000

Cr Allowance for doubtful accounts 16,000

d. Determine the net realizable value of receivables that will appear on the December 31, Year 1, balance sheet.

Accounts receivable $52,000

Explanation:

truck's depreciation expense straight depreciation = ($56,000 - $6,000) / 5 years = $10,000 per year

accounts receivable balance December 31 = $68,000

allowance for doubtful accounts = $0

total sales on account = $320,000

5% of credit sales are uncollectible

accounts receivable = $68,000 - $16,000 = $52,000

8 0

3 years ago

Taylor Company has current sales of 1,000 units, which generates sales revenue of $190,000, variable costs of $76,000 and fixed

Leya [2.2K]

Answer:

The change in net operating income after the changes by $14,200

Explanation:

For computing the change in net operating income, first, we have to compute the contribution per unit which is shown below:

Contribution per unit = Selling per unit - variable cost per unit

= $190 per unit - $76 per unit

= $114 per unit

where,

The selling per unit = (Sales revenue ÷ number of units)

= ($190,000 ÷ 1,000 units)

= $190 per unit

The variable cost per unit = (variable cost ÷ number of units)

= ($76,000 ÷ 1,000 units)

= $76 per unit

Now the change in operating income equals to

= (increased sales units × contribution per unit) - advertising cost

= (300 units × $114 per unit) - $20,000

= $34,200 -$20,000

= $14,200 increase

7 0

3 years ago

After the delivery of the condominium documents in the TREC Residential Condominium Contract the buyer may terminate the contrac

sweet-ann [11.9K]

Answer:

The buyer would have a 12-day option to terminate the contract. Otherwise, he or she might not have any other option than to stick to the contract. (That is, the buyer will not have the unrestricted right to terminate the contract again.)

Explanation:

7 0

3 years ago

Which of these lists correctly orders the binary

xz_007 [3.2K]

Answer:

the third option

Explanation:

Your welcome :)

5 0

2 years ago

Paul loved to party at mardi gras, even if he was not involved in making a float or anything else. the atmosphere on the street

Mashutka [201]

The answer is moral holiday. Taking a moral holiday means temporarily loosening up and taking it easy, not carrying the heaviness of the world on your shoulders, not being despairingly depressed by depressing realities. In other words, there are specified times when people are allowed to break norms. The best example is during Mardi gras.

3 0

3 years ago