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Taxes are called as Regressive when-
More burden on poor as compared to rich
It causes same burden on rich and poor
Less burden on poor as compared to rich
None of these
A regressive tax is a tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners. It is in opposition to a progressive tax, which takes a larger percentage from high-income earners. A regressive tax is a tax that takes a greater percentage of income from those who earn less, than from those with a higher income. ... Examples of regressive taxes include sales taxes and property taxes, which are set at a flat percentage, regardless of who the purchaser or owner is. Low-income individuals pay a higher amount of their incomes in taxes compared to high-income earners under a regressive tax system because the government assesses tax as a percentage of the value of the asset that a taxpayer purchases or owns.
By: Amit Kumar ProfileResourcesReport error
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