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    Effects of imposing Proportional and Progressive Tax

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    Proportional and Progressive Tax. See attached file for full problem description.

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    Progressive and proportional taxes are a form of automatic stabilizers. Automatic stabilizers serve to dampen the economy in times of prosperity and to lessen the effect of recessions. Progressive taxes do this by absorbing some of the impact when a person takes a job that pays less. They will move to a lower tax bracket, so ...

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    Economic effects of taxation