Are You a Tax Expert?
3 Questions
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Are You a Tax Expert?

Created by
@VictoriousInsight

Questions and Answers

What is the purpose of imposing taxes?

  • To promote inequality
  • To burden the citizens
  • To reduce the national budget
  • To support the government and public needs (correct)
  • What is the difference between regressive and progressive tax rate structures?

  • Regressive taxes have an increasing average rate as the tax base increases, while progressive taxes have a constant average rate for all levels of the tax base
  • Regressive taxes are based on the principle that the rich should pay a larger amount of tax than the poor, while progressive taxes have a decreasing average rate as the tax base increases
  • Regressive taxes have a decreasing average rate as the tax base increases, while progressive taxes have an increasing average rate as the tax base increases (correct)
  • Regressive taxes have a constant average rate for all levels of the tax base, while progressive taxes have a decreasing average rate as the tax base increases
  • What are the essential characteristics of tax?

  • It is voluntary and optional
  • It is an enforced contribution and proportionate in character (correct)
  • It is imposed for the purpose of promoting inequality
  • It is generally payable in kind
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