Indirect taxes are generally proportional in nature while the direct taxes are_______.
Dear Student,
A direct tax is paid by an individual or organization to the entity that levied the tax. Direct taxes include income tax, corporate tax, value-added tax etc.
proportionate Rate :- the rate of taxation remains constant with increase or decrease in income.
Progressive Tax :- A tax which causes greater real burden on the rich compared to the poor.
Regressive Tax :- A tax which causes greater real burden on the poor compared to the rich.
This implies that even a proportionate tax is a regressive tax.
Regards
A direct tax is paid by an individual or organization to the entity that levied the tax. Direct taxes include income tax, corporate tax, value-added tax etc.
proportionate Rate :- the rate of taxation remains constant with increase or decrease in income.
Progressive Tax :- A tax which causes greater real burden on the rich compared to the poor.
Regressive Tax :- A tax which causes greater real burden on the poor compared to the rich.
This implies that even a proportionate tax is a regressive tax.
Regards