Multiple choice

Which of the following taxes is opposite to progressive tax?

  1. Proportional tax

  2. Regressive tax

  3. Degressive tax

  4. None of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is regressive tax. In the progressive tax, the tax rate increases with the increase in income. In regressive tax, the tax rate decreases with the increase in income. Hence, the regressive tax is opposite of progressive tax.