Explain how the American tax system has gone from “progressive” to “regressive” over the past 4 decades. As you explain the "regressive" system, please outline what Heiner means by the "effective tax rate" and how this leads to tax regression. Please provide at least 2 corporate examples of this process from Heiner's chapter (e.g. General Electric, etc.). 

What is "investment income" and how does this help explain the regressive system? 

How the current tax system increases inequality and weakens macroeconomic growth (i.e. GDP) potential. In doing so, focus on "consumption" (as outlined in the chapter section titled "Inequality: Bad for Business").

Answer rating: 100% (QA)

Progressive tax system is a tax system under which taxes paid are based on the taxpayers ability to pay the taxes based on their incomes High income i... View the full answer