Examlex
______________ poverty exists when people do not have the means to secure the most basic necessities of life.
Progressive
A taxation system in which the tax rate increases as the taxable amount increases, often applied to income tax.
Regressive
In taxation, regressive describes a tax that takes a smaller percentage of income as the income increases, often placing more burden on lower-income individuals.
Average Tax Rate
The average tax rate is the percentage of total income paid in taxes, calculated by dividing the total amount of taxes paid by the total income before taxes.
Taxable Income
The portion of an individual's or corporation's income that is subject to income tax after allowances, exemptions, and deductions.
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