Asked by Nathan Gerlach on May 21, 2024
Verified
Although state and local taxes are highly progressive, federal taxation is predominantly regressive.
State And Local Taxes
Taxes imposed by individual states and local governments in the U.S. on income, property, sales, and other activities to fund public services.
Predominantly Regressive
Describing a situation or policy where the burden disproportionately affects those with lower incomes, making it effectively regressive in impact.
- Comprehend the fundamental concepts and various categories of taxes.
- Understand the diminishing aspect of some taxes and the rationale behind it.
Verified Answer
TA
Tselal AbrhaMay 23, 2024
Final Answer :
False
Explanation :
Federal taxation is generally progressive, meaning that higher income individuals pay a larger percentage of their income in taxes compared to lower income individuals, primarily due to the progressive structure of the federal income tax. State and local taxes, on the other hand, can often be regressive, with sales taxes and property taxes taking a larger percentage of income from lower earners.
Learning Objectives
- Comprehend the fundamental concepts and various categories of taxes.
- Understand the diminishing aspect of some taxes and the rationale behind it.