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Discuss in details the types of taxes

Discuss in details the types of taxes

Answers

Judy
(i)Progressive, Proportional and Regressive Taxes
Taxes are levied by the government on the basis of three major classes of tax rates. They are progressive, proportional and regressive. In order to understand them, it is essential to know how these three types of tax rates differ from each other on the basis of the tax base. The base is the item to be taxed. It is the income being taxed in the case of income tax, the value of property in the case of a property tax, and. the value of goods sold in the case of a sales tax.

(ii)Proportional Tax
A proportional tax is one whose percentage rate remains the same as the tax base increases. As a result, the amount of tax paid is proportional to the tax base. If the tax rate is constant at 30%, every person shall have to pay income tax at this rate as his/her income Tax Amount increases.

(iii)Regressive taxation

(iv)Digressive taxation
Judiesiz answered the question on July 7, 2018 at 00:04

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