taxation

Question 1

1. Progressive Tax

Answer 1

With a progressive tax, the proportion of income, profit or price you pay in tax will increase as your income, profit or price increases.

Question 2

2. Regressive Tax

Answer 2

With a regressive tax, the proportion of income, profit or price you pay in tax will decrease as your income, profit or price increases.

Question 3

3. Proportional Tax

Answer 3

With a proportional tax, the proportion of income, profit or price you pay in tax will stay the same as your income, profit or price increases.