Asked by
Hogan Wiggins
on Nov 13, 2024Verified
What happens when lower-income Canadians spend more of their income on consumption?
A) Regressive taxes hurt them more.
B) Progressive taxes hurt them more.
C) They are given tax credits to ensure progressive taxation does not hurt them.
D) They are given tax credits to ensure that regressive taxation does not hurt them.
Regressive Taxes
Tax systems in which the tax rate decreases as the taxable amount (income or expenditure) increases, placing a higher relative burden on lower-income earners.
Lower-Income Canadians
Canadians who earn income significantly below the national average, placing them in the lower economic strata of society.
Tax Credits
Financial incentives or reductions in tax payments provided by governments to encourage certain behaviors or to aid taxpayers in specific situations.
- Differentiate between progressive and regressive taxation systems and their impacts on various income brackets.
Verified Answer
DM
Learning Objectives
- Differentiate between progressive and regressive taxation systems and their impacts on various income brackets.