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A 5% tax levied on everywhere to a lamborghini subsidy policy is regressive. It is important to look at both sides of the equation to make a conclusion. Thats
by conanbatt 9y ago
A 5% tax levied on everywhere to a lamborghini subsidy policy is regressive. It is important to look at both sides of the equation to make a conclusion.
Thats why you can have a flat tax, and a progressive government by spending for the poorer and levying flat. In fact, a flat tax is probably progressive simply because the rich dont use a multitude of public services the average poor does, like schooling, or healthcare or whatever.
- WorldMaker 9y agoRegressive is not the opposite of Progressive in tax politics. You may be confusing "conservative" here? The commonly accepted denotation: > (of a tax) taking a proportionally greater amount from those on lower incomes Has absolutely nothing to do with spending, but on how much proportionally you are taking.
- conanbatt 9y agoAgain, it is not economics to not look at how it is spent, because the spending can be progressive or regressive. You can have super progressive taxation and a wealth distribution from the poor to the rich, and a super regressive taxation that distributes from the rich to the poor.