A Tax Whose Impact Varies Inversely with the Income of the Person

question 66

Multiple Choice

A tax whose impact varies inversely with the income of the person taxed, and poor people have a higher percentage of their income taxed than rich people, is known as a:

• A) regressive tax.
• B) progressive tax.
• C) proportional tax.
• D) flat tax.
• E) tax holiday.

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Definitions:

Management Buyout

An acquisition where a company's existing managers acquire a large part or all of the company from the current owners.

Corporate Stock

Equity securities issued by corporations, representing ownership in the company and rights to its profits.

Public

The general population or community at large, often referenced in the context of public services, spaces, or interests.

Goodwill

An intangible asset representing the value of a business's brand, customer base, reputation, and other non-physical factors.