Due thu mar 27 resources al tutor submit answer tion 7 of 10...

Due: Thu, Mar 27 Resources Al Tutor Submit Answer tion 7 of 10 > new tax policy has been passed in the country of Caldeconnia, a constitutional monarchy located high up in the Stap untain Range. This new policy states that 6% of the wages of every worker must go to taxes, regardless of how much y earn. This tax is an example of a(n) corporate income tax. O excise tax. proportional tax. progressive tax.

Transcript

00:01 Okay, so we will understand the different types of taxation policy.

00:08 Okay, and the taxation policy is devised according to the three types of concepts and we will understand three of them.

00:20 First of all progressive, then regressive and then proportional.

00:41 Okay, so what happens in three of them? we will understand.

00:47 In progressive, what happens? high income earning individuals pay tax at higher rates okay so this is the system of taxation that the taxpayer whose income is above the tax slab rates okay slab rates which has been developed by government authorities okay taxation authorities specifically so those tax taxpayers will be paying higher tax on their income.

01:47 However in case of real say what happens low income earning individuals pay tax at lower rates sorry at higher rates okay so now you can understand that this system is not correct aggressive system is not correct why because low income earning individuals will be likely to pay higher income tax okay but what happens in proportional in the last one there is a specific tax rate let's suppose every individual will be required to pay 30 % of his income to the government okay so every person even the high income earning individual or the low income earning individual will be paying 30 % of their income as tax to the government.

03:10 However, there are cases where we could identify that whether it is progressive, regressive, what type of taxation policy it is.

03:25 Okay.

03:26 Now, what happens in the first case, it is progressive.

03:34 Why? because such income tax, such income tax rate, will be applicable on individual basis.

03:45 Who the income of, let's say suppose the income of taxpayer reaches above the threshold level, designed by the income tax authorities, then that person will be likely to pay next to the government on that basis, on that slab basis.

04:03 So it is a progressive.

04:05 However, the tax incidence lies on the tax.

04:11 Tax code.

04:16 Okay.

04:17 What is the meaning of tax incidents? tax incidents meaning of tax incidence is burden of tax incidents...

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