HL2 Bw012
1. Distingish between progressive,
regressive and propotional taxation, provide examples of all.
Progressive- As income raises so do taxes within tax brackets. The United
states does this as do most countries.
Regressive taxes- The proportion of income paid
in tax falls as income rises. All Vat taxes are like this as people with
higher income pay less of a proportion on their goods.
Proportional taxes- Constant for all income levels.
Ros Perot ran in 92 and 96 on the platform of a flat tax.
2. Demonstrate the effect of each type
of taxation on the Lorenz curve
3. Explain 2 methods other than direct
taxes that governments can use as methods to resditribute income in favor of
lower income groups.
Govs can use transfrer payment to redistribute income
and provide assistance to groups who need it.
+Benefits
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