Classes of taxes




Tax rates and tax rate
Taxes are generally calculated based on percentages, called tax rate , tax rates or liquors, on a particular value, the tax base . It distinguishes:

Proportional or flat tax , when the percentage is not dependent on the taxable base or the income of the individual subject to taxes.
Progressive tax , the higher the profit or income, the higher the percentage of taxes on the basis.
Regressive tax , the higher the profit or income, the lower is the percentage of taxes that must be paid on the total taxable base.
Progressive taxes reduce the burden on people with lower incomes, as they pay a lower percentage of their earnings. This can be seen as a good thing in itself or can be done for pragmatic reasons, since it requires less records and complexity for people with smaller businesses. It is sometimes called a progressive or regressive tax to a tax whose effects may be more favorable or unfavorable on the people of lower incomes, but this informal use of the term does not admit a clear definition of regressively or escalation.

The discussion on the progressivity or regressively of a tax is linked to the "equity" tax principle, which in turn refers to the principle of "tax capacity" or contributory. The Constitution of the Argentine Nation (article 16) reads: "Equality is the basis of tax and public charges," what the doctrine understood as "equality of efforts" or "equality between equals." This gives rise to the concept of horizontal and vertical equity of the tax. Horizontal equity indicates that, to equal income, consumption or wealth, taxpayers must contribute to the tax to equal extent. Vertical equity indicates that higher income, consumption or wealth must be provided more, i.e. at higher rates, to achieve "equal effort". Based on this last concept, is that the use of the term "regressively" has been generalized to qualify the taxes that demand a greater contributory effort to those who have less tax capacity. This is the case of the VAT, which, being a flat tax in its aliquot, imposes a higher tax burden on the lower classes by taxing basic necessities.

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