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What is the tax structure and benefits for salaried person?

Economics help!! pls! When tax rates declines as a person's income increases, the tax structure is:?

  • When the tax rates decline as a person's income increases, the tax structure is:.... A - progressive B - regressive C - proportional D - neutral -pls help !! :)

  • Answer:

    E. georgebushive

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regressive

exon111

Regressive.

neopot2002

B - regressive.

ehrlich

regressive. Try to do process of elimination. You know what all the words mean, I'm assuming, so go from there. as the income increases, his tax rates decrease, so it's not proportional - that would mean his tax rates would increase as his income increases. It's not neutral b/c it would remain the same.

lkb1

B. Regressive. This is the Republican party platform. Sales taxes and user fees to pay for everything. Progressive taxes make the people who earn more pay more. Bill Gates can afford much more, so he pays much more, not only in dollars, but also as a percentage of income. The U.S. Income Tax system was quite progressive before Ronald Reagan. Now, income taxes are much flatter. They are still more progressive than sales taxes and user fees, such a vehicle registration and car tolls. Sales taxes and car tolls are exactly the same for Bill Gates as an unemployed disabled person. That makes them extremely regressive.

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