2007-11-09 16:50:30 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
A progressive tax rate simply means the more you make, the higher tax rate is computive. So, the not only does the dollar amount go up, but so does the percentage.
2007-11-13 07:05:05 · answer #1 · answered by rob b 3 · 0⤊ 1⤋
Per the first poster, income tax is progressive because the poor pay less. Sales tax is regressive because people with lower incomes spend a larger part of that income on taxable items.
Social Security is not as regressive as it seems because when payback time comes, people with lower incomes get a much greater return. Benefits are based on your average indexed monthly earnings at tiers of 90%, 32% and 15% and, above the maximum, 0%.
2007-11-10 05:14:14 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Income tax is progressive - the higher the income, the higher the tax rate.
Social security tax is regressive. The lower the income the higher the tax rate (as a percentage of total income).
2007-11-09 16:55:31 · answer #3 · answered by Doctor J 7 · 1⤊ 1⤋
Kind'a like the differance between jumping off a tall building or being pushed....
Either tax sucks the life force out of you and someone else gives it to someone that didn't work for it.
2007-11-09 16:57:14 · answer #4 · answered by fogtender 3 · 0⤊ 2⤋