A family that earns $20,000 a year pays $4,000 a year in payroll taxes. A family that earns $40,000 a year pays $8,000 a year in payroll taxes. The payroll tax is a ________ tax.

A) progressive
B) regressive
C) proportional
D) benefits-received

Question

Benjamin Fadayomi · Accepted Answer

Final Answer : C, Explanation :  The payroll tax is proportional because the tax rate remains constant regardless of income level, as both families pay 20% of their income in taxes.

A family that earns $20,000 a year pays $4,000 a year in payroll taxes. A family that earns $40,000 a year pays $8,000 a year in payroll taxes. The payroll tax is a ________ tax.

A) progressive
B) regressive
C) proportional
D) benefits-received

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Learning Objectives

Related questions

A family that earns $20,000 a year pays $4,000 a year in payroll taxes. A family that earns $40,000 a year pays $8,000 a year in payroll taxes. The payroll tax is a ________ tax.A) progressiveB) regressiveC) proportionalD) benefits-received

Definitions

Learning Objectives

Learning Objectives

Related questions

A family that earns $20,000 a year pays $4,000 a year in payroll taxes. A family that earns $40,000 a year pays $8,000 a year in payroll taxes. The payroll tax is a ________ tax.

A) progressive
B) regressive
C) proportional
D) benefits-received