The Congress shall have Power
1. To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;
—Article 1, Section 8, Clause 1 of the Constitution of the United States
This passage from the Constitution supports which of the following statements?
a. A national tax may be used to benefit a
particular group or interest if Congress so chooses.
b. No tax of any kind can exceed a certain maximum limit set by Congress.
c. A national tax cannot be levied at different rates in different states.
d. All national taxes must be devoted to providing for the common defense.
Which type of tax takes a higher percentage of income from poorer people?
progressive tax—A tax that takes a larger percentage of income from high-income groups than from low-income groups. proportional tax—A tax that takes the same percentage of income from all income groups. regressive tax—A tax that takes a larger percentage of income from low-income groups than from high-income groups.
What type of tax takes a higher percentage as your income increases?
A progressive tax imposes a higher percentage rate on taxpayers who have higher incomes. The U.S. income tax system is an example. A regressive tax imposes the same rate on all taxpayers, regardless of ability to pay.
What is progressive tax and regressive tax?
A progressive tax is characterized by a more than proportional rise in the tax liability relative to the increase in income, and a regressive tax is characterized by a less than proportional rise in the relative burden.
Is income tax progressive or regressive?
The income tax is the most progressive aspect of the federal tax system, providing an effective tax rate of -2 percent for the bottom 50 percent of earners.