Who do these taxes effect? A progressive tax effects someones income raises. A proportional tax effects it hurts all people equally.
A regressive tax effects the lower income people.
Examples:
An example of a progressive tax is Federal Income Tax. An example of an proportional tax is sales tax. An example of a regressive tax is payroll taxes. Like social security.
Other types of Taxes
Income Tax: Paid by anyone who earns an income. Income taxes are subject to deductions and tax credits; they are usually not paid by people under a certain income or who have special situations such as a disability.
Corporate Tax: All business structures pay taxes on the income made in that particular business. Tax consequences are important when structuring a business.
Do you know what the difference between progressive, proportional, and regressive taxes are? Progressive tax- a progressive tax is a tax where the tax rate increases as the taxable base amount increases. When they say "progressive" that refers to the way the tax rate progresses from low to high, with the result that a taxpayer's average tax rate is less than the person's marginal tax rate. Proportional tax- is a tax imposed so that the tax rate is fixed, with no change as the taxable base amount increases or decreases. The amount of the tax is in proportion to the amount subject to taxation. Regressive tax- is a tax that is applied uniformly. Which means that it hits lower-income individuals harder.