6-Economics-Macroeconomics-Government Actions-Tax-Types

progressive tax

Taxes {progressive tax}|, such as income taxes, can assess at higher rates for higher incomes or wealth. They take lower percentage of income or wealth from lower-income people.

regressive tax

Fixed percentage taxes {regressive tax}|, such as sales and property taxes, take more value from lower-income people than from higher-income people. These taxes reduce consumption more than savings.

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6-Economics-Macroeconomics-Government Actions-Tax

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