Question

______ is mixture of proportional and progressive tax system.

Options

• Specific taxes

• Ad valorem taxes

• Regressive taxes

• Digressive taxes

Answer 1

Digressive taxes is mixture of proportional and progressive tax system.

Explanation:

Digressive taxes are a mix of proportional and progressive tax systems. In this system, the tax rate increases as income increases, but after a certain point, the rate becomes almost flat. This combines features of both proportional (constant rate) and progressive (increasing rate) tax systems.