Some important taxes are regressive,such as provincial sales taxes.In an effort to achieve proportionality in the overall tax system it is therefore necessary to impose
A)substantial progressivity in income taxes.
B)a negative income tax.
C)a flat-rate tax.
D)consumption taxation.
E)efficiency in the tax system.

Question

Quizplus · Accepted Answer

Since provincial sales taxes are regressive, which means the burden falls more heavily on low-income earners than high-income earners, it is necessary to have substantial progressivity in income taxes. By doing so, the tax burden can be more equitably distributed, and individuals with higher incomes contribute a larger share of their income to the overall tax system. This can help achieve proportionality in the tax system.

Some Important Taxes Are Regressive,such as Provincial Sales Taxes