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Proportional, Progressive, and Regressive taxes

8 July, 2010 (05:55) | Uncategorized | By: The Captain

Taxes can be categorized by the impact they have on the distribution of income and wealth. A proportional tax is a kind that impinges the same relative requirement on every taxpayer—i.e., when tax liability and income move in equal levels. A progressive tax is recognised by a larger than proportional growth in the tax liability [...]