List three types of taxes that are based on wealth

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20-09-2021
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List three types of taxes that are based on wealth

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Tundexi Tundexi · Answer 1 · 2021-09-29T18:10:15+02:00

They are Regressive, Proportional and Progressive Taxes.

Let understand that Wealth Taxes are different from Income Taxes because it is a compulsory financial charge of levy imposed with aim to reduce the inequality between the Rich and the Poor.

The three type of Wealth Taxes are:

Regressive Taxes is a type of tax where lower incomes are imposes with higher tax burden than those with higher incomes.

Proportional Taxes is a type of tax where the same rate is applied to both low income and high income earners.

Progressive Taxes is a type of tax which rates increases as the income increases as well.

Learn more about Wealth Taxes here

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