Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 50, Problem 5MCQ
To determine
The option that is most likely to be a regressive tax
Expert Solution & Answer
Explanation of Solution
A tax of 12% of the value of each individual’s property is the most likely to be a regressive tax because here, property taxes are fundamentally regressive. Here, two individuals are under the same tax jurisdiction with the same value and they are liable to pay the exact similar amount of tax, no matter what is their income.
Therefore, the correct option is a.
Economics Concept Introduction
Introduction:
A regressive tax refers to the tax that is assessed regardless of income where the high tax burden is on low-earners.
Chapter 50 Solutions
Krugman's Economics For The Ap® Course
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