Effects of regressive taxes in an economy.
- They encourage hard work among the poor.
- They widen income gap between the poor and the rich.
- They limit consumption of consumer goods/reduce standards of living among the poor.
- Low revenue realized by the government.
- They discourage savings and investment among low income earners.
- They lead to social unrest/political discontent ·
- Resentment among the low income earners /the poor.
- They encourage tax evasion and avoidance among the poor
- They promote saving among the rich
CATEGORIES Economics
TAGS Dr. Bbosa Science
