<p>could someone explain progressive, regressive and proportional tax?</p>
<p>would 7% tax on all merchandise be regressive and a property tax of 1% of a property’s value be progressive?</p>
<p>proportional would be a % of income/assets…people who advocate for a “flat tax” (rate) are in favor of proportional tax…john, suzy, and sally all pay 5%, no matter how much $ each has.</p>
<p>progressive means if you have more $/assets/whatever, you pay more…graduated income brackets, which is what we have now as our federal income tax.</p>
<p>regressive is a bit foggier…it depends on income elasticity. social security withholdings are an example of regressive…your book can explain it better.</p>