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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.
$13,000 were excluded from the tax. Similar to the federal income tax, the gift tax rates. are marginal and progressive, with a maximum tax rate of 45%. The estate and gift taxes are the most progressive element of federal taxation. The estate. tax is paid exclusively by those with considerable assets.