AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
Define flat tax9/25/2023 Progressive taxes increase based on your taxable income. Progressive taxes are the opposite of regressive taxes. The GST is 0.17% of the retail worker’s income The GST is 0.03% of the doctor’s income This is known as a regressive tax because it has a larger percentage impact on lower income individuals. Although the $50 GST amount is the same for both the doctor and the retail worker it is a higher percentage of the retail workers overall income. They both purchase a laptop for $1,000, and are charged $50 GST ($1,000 X 5%). For example, say a doctor earns $175,000 annually and a retail worker earns $30,000 annually. A regressive tax system affects low-income taxpayers more than high-income taxpayers because it takes a higher percentage of their earnings.Ī great example of a regressive tax is the 5% Goods and Services Tax (GST). ![]() ![]() Regressive taxes are applied uniformly, and they do not change based on an individual’s level of income. ![]() 3 Describe the differences between a regressive, progressive and flat tax.
0 Comments
Read More
Leave a Reply. |