Answer to Question #321143 in Microeconomics for chuster

Question

 Name and describe three tax methods 

Answer 1

1) Regressive tax method

2) Progressive tax method

3) Proportional tax system.

The regressive tax method seeks to tax low income earners higher than the high-income earners. This tax system seeks to ensure productivity of low income earners in the economy.

Progressive tax method imposes a higher tax percentage on high income earners. This helps to create a form of balance between high and low income earners.

Proportional tax method imposes a flat percentage on everyone irrespective of income level.