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What are the 2 components of taxes? - 🧠ANSWER ✔✔Tax rate and tax
base
What are the 3 types of tax rates? - 🧠ANSWER ✔✔Proportional,
progressive and regressive
Proportional Taxes - 🧠ANSWER ✔✔the rate of tax remains constant over
the tax base (sales tax)
Progressive taxes - 🧠ANSWER ✔✔Tax rates increase as the tax base
grows larger (Federal income, gift and estate tax)
Regressive taxes - 🧠ANSWER ✔✔Tax rates decrease as the tax base
grows larger (Federal employment taxes such as FUTA and FICA)
What are the different tax bases? - 🧠ANSWER ✔✔Transactions, Property
or wealth, Privileges and rights, and income
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