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

I need help please ❤️

alukav5142 [94]

Answer:

the pdf wont load

Explanation:

5 0

3 years ago

How does the federal government spend its income?

Ugo [173]

All U.S gov. spending can be divided into 3 categories. 1) Mandatory spending. 2) Discretionary spending & 3) Interest on federal debt. Hope this helps you! :)

8 0

3 years ago

A customer bought a $1,000 par convertible subordinated debenture at par, convertible into common at $32 per share. If the bond'

Pachacha [2.7K]

Answer:

correct option is b. $36

Explanation:

given data

bought = $1,000 par convertible

convertible into common = $32 per share

bond market price increases = 12.5%

solution

we know that conversion ratio is fixed when the convertible security are issued and it does not change

we have bond is issued with a conversion price = $32

so as per each bond converting conversion ratio will be

conversion ratio = $\frac{1000}{32}$ = 31.25 : 1

so by every bond which is converted , then receives = 31.25 share

so now bond price will be = $1125

parity price of the stock will as = $\frac{1125}{31.25}$

parity price of the stock = $36

correct option is b. $36

5 0

3 years ago

You manage a pension fund that promises to pay out $10 million to its contributors in five years. You buy $7472582 worth of par-

julia-pushkina [17]

Answer :

Shortfall of money = $74,598

Explanation :

As per the data given in the question,

Par value of bond = $7,472,582

To determine the future value of annual coupon payments received, we will use FV of annuity's formula

FV of Annuity = P [(1 + r)^n- 1 ÷ r]

where,

P = Periodic payment

r = interest rate

n = Time period

here P = 6% of $7,472,582 = $448,354.92

r = 4.50%

n = 5 years

FV of Annuity = $448,354.92 × [(1 + 4.50%)^5 - 1) ÷ 4.50%]

=$2,452,820

Shortfall at the end of 5 years is

= $10,000,000 - $7,472,582 - $2,452,820

= $74,598

6 0

3 years ago

1. A master budget________. a) is the initial plan of what the company intends to accomplish in the period and evolves from both

Korolek [52]

Answers:

The correct answer is 1. a) is the initial plan of what the company intends to accomplish in the period and evolves from both the operating and financing decisions. 2. d. budgeted income statement.

Explanation:

To begin with, a budget is an estimate of the expected results of a specific area in a given period, mainly one year. For its part, the master budget is a plan that covers all areas of the company, and can be adjusted depending on the situations or events that influence the achievement of results. This tool allows a projection of the expected returns taking into account a previous base and the current situation of the sector in which it is located, which is why it is important because it allows drawing a road map for the benefit of all collaborators.

6 0

2 years ago