It is the _______ that matter(s) in evaluating whether a tax is regressive, proportional, or progressive.
A) incidence
B) principle
C) payer of the tax
D) amount

Question

Quizplus · Accepted Answer

The incidence of a tax refers to who ultimately bears the burden of the tax. This is what matters in evaluating whether a tax is regressive, proportional, or progressive. For example, a tax may appear to be proportional (everyone pays the same percentage of their income), but if it disproportionately affects low-income individuals, it can be considered regressive in terms of its incidence.

It Is the _______ That Matter(s) in Evaluating Whether a Tax