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22 October, 23:50

Federal gasoline is taxed at 18 cents per gallon. Is this a progressive tax, proportional tax or regressive tax? Explain why ...

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  1. 23 October, 02:52
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    Answer: Proportional tax

    Explanation:

    Progressive tax rate means the tax charged based on the income levels of the people. Poor income groups pay less tax while high income group pays higher taxes. Regressive tax rate is the opposite of progressive tax where low income group are charged with higher taxes.

    Federal gasoline is a common product used by all types of income group people. Federal gasoline has a flat tax rate. Proportional tax means same flat tax rates for everyone irrespective of their income group.
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