The following three taxes are named. • a sales tax (VAT) applied to fuel • a specific tax at 10% on cigarettes • the percentage rate of income tax on individual earnings rises as taxable income rises Which combination shows the effect of each tax type?
- AVAT: progressive; specific tax: progressive; income tax: regressive
- BVAT: progressive; specific tax: regressive; income tax: progressive
- CVAT: regressive; specific tax: progressive; income tax: regressive
- DVAT: regressive; specific tax: regressive; income tax: progressive