Thread: Will Tax Bill Produce A Real Estate Debacle Or Is A Boom Ahead?

I think there is still some confusion on the "Tax Poll" that has been on site for about a week.

Tax Poll.jpg

We (and most G-20 countries) have a"Progressive" Income Tax Code...where rates rise with rising income.

A "Regressive Tax" is like a sales tax or a Flat Tax where the rate or tax price is the same no matter what income level you are.
https://www.investopedia.com/terms/r...-layout-no-ads

What is 'Regressive Tax'

A regressive tax is a tax that takes a larger percentage of income from low-income earners than from high-income earners. It is in opposition with a progressive tax, which takes a larger percentage from high-income earners. A regressive tax is generally a tax that is applied uniformly to all situations, regardless of the payer.


BREAKING DOWN 'Regressive Tax'

A regressive tax affects people with low incomes more severely than people with high incomes. While it may be fair in some instances to tax everyone at the same rate, it is seen as unjust in other cases. As such, most income tax systems employ a progressive schedule that taxes high earners at a higher percentage rate than low earners, while other types of taxes are uniformly applied.
Examples of regressive taxes include sales taxes, user fees and, arguably, property taxes.

Flat Tax


Often bandied around in debates about income tax, the phrase "flat tax" refers to a taxation system in which the government taxes all income at the same percentage regardless of earnings. Under a flat tax, there are no special deductions or credits. Rather, each person pays a set percentage on all income.




Read more: Regressive Taxhttps://www.investopedia.com/terms/r...#ixzz4yK8Fufen
Follow us: Investopedia on Facebook