Question

Flat tax systems avoid being regressive by allowing a uniform reduction in the tax base. Progressive tax structures lead to progressively lower tax rates for high-income earners over time to stimulate the economy and promote growth. Ad valorem taxes are assessed regardless of the value of the property. The most regressive sales tax structures exempt food purchased at grocery stores from the tax base.True / False.

Answer 1

True.

Step-by-step explanation:

A progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. That means it takes a larger percentage from high-income earners than it does from low-income individuals.