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 | To pay off the interest of the National Debt, taxes are needed. | |
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| The distribution of income is also affected, purchasing power is transferred frm the public sector to the private. | |
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| Wait. What kinds of taxes are there anyway? | |
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| Three kinds, actually. Proportional, progressive, and regressive. | |
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| Proportion taxes are a fixed tax on an income. (I.E. 10% of $1000=$100) Progressive taxes increase as income insreases, like the federal income tax, and a regressive tax is a tax that decreases as income increases, so more income=lower taxes, like sales on food |
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