Taxation

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.

A Progressive tax is where taxes increase in line with incomes. In other words, the higher the income, the higher the rate of taxation.

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.

A tariff is an import tax on goods coming into a country. So when a good arrives at customs from sea, plane, or motor vehicle, an import tax is due based upon the current ‘schedule’.