Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 14

Which combination of tax changes is most likely to be regressive in a developed economy?

1. Aincreasing the rate of wealth tax and raising the rate of sales tax (VAT) on luxury products
2. Bintroducing a tax on owning property based on its sales value and increasing the rate of income tax
3. Creducing the basic rate of income tax and increasing the duty on fuel
4. Dremoving the tax-free allowance for income tax and extending sales tax (VAT) to include all food

As printed in the paper