Explain the difference between a progressive tax and a regressive tax with Australian examples.

Explain the difference between a progressive tax and a regressive tax with Australian examples.

• A. A progressive tax takes a larger share from low-income earners.
• B. A regressive tax raises more from high-income earners.
• C. Progressive tax raises a higher percentage of income from higher earners (e.g., personal income tax).
• D. Both taxes have the same impact on income groups.

Answer: (C)