Explain why each of the following taxes is progressive or regressive?

Question

a. A $1 per pack federal excise tax on cigarettes
b. The federal individual income tax
c. The federal payroll tax

Answer 1

a. regressive; the more money you make, the lesser % of tax you pay
ex. you make $100/week
$1 tax = 1%
you make $200/week
$1 tax = .5%

b. progressive
the more you make, the more they take!
as your income increase, the % that the government takes in taxes increases as well

c. flat tax % (SS and medicaid) up to a certain level of income

Answer 2

I do not like this term. but a. is reg as all must pay. b. is pro as the rich pay more c. is pro the More you make the more you pay