Page 17 - F1 Integrated Workbook STUDENT 2018
P. 17

Features of Taxation and the Regulatory Environment





                           Tax rate structure





               There are three types of taxes:

                    Progressive taxes: These take an increasing proportion of income as income
                     rises.  (E.g. UK Income Tax – 20%, 40%, 50%)

                    Proportional taxes: These take the same proportion of income as income
                     rises.

                    Regressive taxes: These take a decreasing proportion of income as income
                     rises. (E.g. UK National Insurance contributions – 11% then 1%).

























































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