Examlex
Which of the following is a form of physical withdrawal?
Proportional Taxation
A tax system where the tax rate is fixed and does not change with the income level of the taxpayer, implying everyone pays the same percentage of their income in taxes.
Regressive Taxation
A tax system where the tax rate decreases as the taxable amount increases, meaning lower-income individuals pay a higher percentage of their income compared to higher-income earners.
Tax Incidence
The distribution of tax burden among taxpayers; who ultimately pays the tax.
Marginal Tax Rate
The percentage of each additional dollar of income that goes to the tax.
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