• Is federal income tax a direct or indirect tax? Explain your response.
Federal income tax is a direct tax. This is because it is paid straight to the government.
• What are the main differences between the flat, regressive, and progressive tax plans?
Flat tax is a set or fixed rate. The tax percentage stays the same no matter the income or price of the product. In regressive the tax rate decreases as the price of the product increases. In this if you have less of an income you have a higher tax. Progressive tax is when a larger percentage taken out for taxes as an income increases.
• Under which plan would you pay the most in taxes? Under which plan would you pay the least in taxes?
In progressive tax plan you would pay the most in taxes.
Federal income tax is a direct tax. This is because it is paid straight to the government.
• What are the main differences between the flat, regressive, and progressive tax plans?
Flat tax is a set or fixed rate. The tax percentage stays the same no matter the income or price of the product. In regressive the tax rate decreases as the price of the product increases. In this if you have less of an income you have a higher tax. Progressive tax is when a larger percentage taken out for taxes as an income increases.
• Under which plan would you pay the most in taxes? Under which plan would you pay the least in taxes?
In progressive tax plan you would pay the most in taxes.