Taxation that allows higher income people to pay less of their income on
taxes than lower income people is called
A. proportional taxation.
B. indirect taxation.
c. regressive taxation.
D. progressive taxation.

Answer:

c. regressive taxation.

Explanation:

Taxation that allows higher income people to pay less of their income on taxes than lower income people is regressive taxation. Thus, option C is correct.

The imposition of mandatory fees on persons or companies by governments is known as taxation. Taxes are imposed in practically every country in the world, mostly to fund government expenditures, though they also serve other functions.

A regressive tax is one that is levied consistently, taking a bigger percentage of low-income earners' income than middle- and high-income earners. It is opposed to a progressive tax, which takes a bigger percentage of high-income taxpayers' earnings. A regressive tax reduces the tax burden as income increases.

Therefore, Regressive taxation occurs when higher-income persons pay less of their income in taxes than lower-income ones. As a result, option C is correct.

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