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Tee difference between a progressive and a regressive tax is that a progressive tax is a direct form of taxation where the rate of taxing increases as income increases, whereas a regressive tax is an indirect tax where the rate of taxing decrecreases as income increases.
10. Generally, most economists feel that a _____type of income tax is a fairer way to raise government revenue than a sales tax. a. regressive. b. proportional. c. flat-rate. d. progressive. ANS: d. A progressive tax is argued to be fair because people with higher incomes pay more tax. 11. The federal personal income tax is an example of a (an) a. excise tax. b. proportional tax. c. progressive tax. d. regressive tax. ANS: c. Since the marginal tax rate increases with income, the federal ...