How to find tax incentives

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AP Macroeconomics › How to find tax incentives

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1

A progressive tax structure is designed in order to put more of the tax burden on _______.

wealthier individuals instead of poorer individuals

corporate profits instead of individual income

sales tax instead of income tax

poorer individuals instead of wealthier individuals

individual income instead of corporate profits

Explanation

A progressive tax system is so-called because, as a person or corporation makes more money, the overall tax burden as a percent of income gets progressively higher. A progressive tax seeks to produce more government revenue from those individuals who are perceived as being more able to bear the burden. Progressive taxation is usually popular politically, making it such a widespread form of taxation.

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