A tax is found to have the following effect. It takes an average of $20 from people with an income of $2000, $40 from people with an income of $5000, and $70 from people with an income of $10,000. This tax is:
proportional. retroactive. regressive. progressive. levied on the ability to pay.
When the burden or incidence of a tax is borne by someone other than the one who is legally obliged to pay the government, economists say that the tax is:
regressive. a valued-added tax. shifted. a subsidy.