Regressive Tax Definition
A regressive tax is where the tax rate falls for those who are in higher income brackets. In other words, lower-income households face a higher tax rate – as a percentage of their income – than higher-income groups.
Taxation
Taxation is how government brings in money to fund its public expenses.
Progressive Tax Definition
A Progressive tax is where taxes increase in line with incomes. In other words, the higher the income, the higher the rate of taxation.
Excise Tax Definition
An excise tax is a tax that is levied on specific products, usually in order to create a socially optimal outcome. For instance, cigarettes, alcohol, and fuel are all examples that have an excise tax.
Tariffs: Definition, Types, Effects & Examples
A tariff is a tax that the government imposes on imported goods.
