-How Much Is the MPC

question 233

Short Answer

-How much is the MPC?

---

Definitions:

Regressive Tax

A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting those with lower incomes.

Social Security Tax

A payroll tax collected to fund the Social Security program, charged to both employers and employees.

Sales Tax

A tax imposed by a government on sales of goods and services, collected by the retailer and passed on to the state or local government.

Proportional Rate Structure

A tax system where the tax rate is the same for all income levels, meaning everyone pays the same percentage of their income in taxes, regardless of how much they earn.