Question
A tax is said to be regressive when its burden falls
Answer: Option B
Answer: (b)
In terms of individual income and wealth, a regressive tax imposes a greater burden on the poor than on the rich.
There is an inverse relationship between the tax rate and the taxpayer’s ability to pay, as measured by assets, consumption, or income.
These taxes tend to reduce the tax burden of the well-to-do, as they shift the burden disproportionately to the needy.
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Answer: (b)
In terms of individual income and wealth, a regressive tax imposes a greater burden on the poor than on the rich.
There is an inverse relationship between the tax rate and the taxpayer’s ability to pay, as measured by assets, consumption, or income.
These taxes tend to reduce the tax burden of the well-to-do, as they shift the burden disproportionately to the needy.
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