What Is the Difference Between a Regressive Tax and a Progressive

question 17

Short Answer

What is the difference between a regressive tax and a progressive tax? Cite examples of both.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit over the cost of investment.

Contribution Margin

Revenues less variable costs.

Discretionary Expenses

Non-essential spending or expenses that can be reduced or eliminated without impacting the fundamental living standard.