Question 8 Which of the following would hurt higher-income or rich people the most? a Flat Tax b Proportional tax Regressive tax d Progressive tax

## Step 1<br />This problem is about understanding different types of taxes and their impact on different income groups. The question asks which type of tax would hurt higher-income or rich people the most.<br /><br />## Step 2<br />Let's understand what each type of tax means:<br /><br />### **Flat Tax**<br />A flat tax is a tax system where everyone is taxed at the same rate, regardless of their income. This means that the rich and the poor are taxed at the same rate.<br /><br />### **Proportional Tax**<br />A proportional tax is a tax system where the tax rate increases as the taxable amount increases. This means that the rich are taxed at a higher rate than the poor.<br /><br />### **Regressive Tax**<br />A regressive tax is a tax system where the tax rate decreases as the taxable amount increases. This means that the poor are taxed at a higher rate than the rich.<br /><br />### **Progressive Tax**<br />A progressive tax is a tax system where the tax rate increases as the taxable amount increases. This means that the rich are taxed at a higher rate than the poor.<br /><br />## Step 3<br />From the above definitions, it is clear that a progressive tax would hurt higher-income or rich people the most because the tax rate increases as the taxable amount increases. This means that the rich are taxed at a higher rate than the poor.