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Sundharesh Sivashanmugam
on Oct 13, 2024

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Groucho earns $5 million and pays $2 million in taxes;Harpo earns $300,000 and pays $80,000 in taxes;Chico earns $25,000 and pays $1,000 in taxes.The tax they pay would be considered

A) progressive.
B) proportional.
C) regressive.

Proportional

Proportional describes a relationship or ratio that maintains the same relative size or aspect between items or variables.

Regressive

Refers to a tax system in which the tax rate decreases as the taxable amount increases, often placing a heavier burden on low-income earners.

Progressive

A political and social philosophy advocating for reforms that aim to reduce inequality, improve social justice, and enhance welfare.

  • Become familiar with the types of fiscal policies (regressive, progressive) and their effects on various income categories.
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Alexi LlamasOct 14, 2024
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