Task A2.2 Types of taxes revisited: what's fair?

Step 1 of 6

Explain briefly how the following tax structures affect the proportion of tax paid by taxpayers.

a. Progressive tax

b. Proportional tax

c. Regressive tax

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  • Fact 12

    The expenses of World War I were so great that the Commonwealth Government introduced three new taxes in 1917: an entertainment tax, a wartime profits tax and a bachelor tax that raised such a bitter protest that it was never put into operation.

Regressive tax

A tax charged at a set dollar amount, regardless of the value of the transaction. The passenger movement charge (also called departure tax) on passengers at airports is a regressive tax.

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