Explanation Government spending is the expenditures made by the government for various purposes in the economy. The government expenditures are made out of the government revenue. The taxes are the important source of revenue for the government. The taxes are the unilateral payments made by the people towards the government on various accounts such as for the income received, for the profession, for the property owned, for the business owned, and so on. Option (c): The tax structure in which the tax rate increases as the income of the individual increases is known as the progressive taxation. When the income of the individual increases, according to the federal taxation, the tax rate keeps increasing, which is an example for the progressive taxation structure. This means that option 'c' is the correct answer. Option (a): Cigarettes are injurious to health and the use of such harmful substances is to be discouraged...

The example for progressive taxation .

MACROECONOMICS FOR TODAY

10th Edition

ISBN: 9781337613057

Author: Tucker

Publisher: CENGAGE L

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Question

Chapter 12, Problem 7SQ

To determine

The example for progressive taxation.

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What is the difference between a progressive tax, a proportional tax, and a regressive tax?

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