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How do proportional, progressive and regressive taxes meet the criteria of simplicity and equity ?

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User Allyson
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1 Answer

1 vote
A proportional tax is a fixed tax.This means that the tax base is constant despite an increase and decrease in tax.On the other hand, a progressive tax is a variable tax, in that, when the tax rate increases, the taxable amount also increase.A regressive tax is inversely proportional such that when tax rate decreases, the taxable amount increases.In doing this, all these taxes meet the criteria of simplicity and equity.
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User Tuupertunut
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7.9k points
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