0
$\begingroup$

Taxation schemes can be classified as progressive (the tax rate is higher for higher income brackets), regressive (the tax rate is lower for higher income brackets), or neutral (the tax rate is the same for all income brackets).

Conceptually, as compared to a neutral taxation scheme, a progressive one shifts the tax burden more towards the higher segments of the income distribution, and a regressive one shifts the tax burden more towards the lower segments.

Is there a way to reason about deficit spending in these terms? That is, which segments of the income distribution does the debt incurred by deficit spending burden more?

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.