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.
Explain briefly how the following tax structures affect the proportion of tax paid by taxpayers.
a. Progressive tax
b. Proportional tax
c. 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.read more glossary terms