O-LevelEconomicsGovernment and the macroeconomy2281/13 · Oct/Nov 2023 · Q181 Mark
Income tax in a country gives all individuals an initial tax-free income allowance. Any income above this allowance is taxed at increasing rates as the incomes of individuals rise. Which change to this income tax will be regressive?
Adecreasing the lowest rate of tax
Bdecreasing the tax-free income allowance
Cincreasing the tax-free income allowance
Dincreasing the top rate of tax
✓ Correct answer
B: decreasing the tax-free income allowance
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