The main difference between a flat tax rate and a progressive tax rate is that a flat tax charges everyone the same percentage of their income regardless of how much they earn, while a progressive tax imposes steadily higher rates on higher levels of income. Under a flat tax, a person making $30,000 a year…
Category: Finance
Difference Between Depreciation and Devaluation of Currency
While both result in a lower currency value, depreciation and devaluation differ fundamentally in their origins and processes. Depreciation unfolds gradually as market dynamics of supply and demand slowly chip away at a currency’s worth when economic conditions shift. In contrast, devaluation occurs suddenly when monetary authorities take direct action to intentionally reset their currency’s…