Mr.Bush earns $1,000,000 and pays $100,000 in taxes.Mr.Gore earns $150,000 and pays $17,500 in taxes.The tax they pay would be considered

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

Progressive Tax

Places greater burden on those with best ability to pay and little or no burden on the poor (for example, federal personal income tax).

Proportional Tax

A tax whose burden falls equally among the rich, the middle class, and the poor.

Regressive Tax

A taxation system where the tax rate decreases as the taxable amount increases, leading to a higher tax burden on lower-income individuals relative to higher-income individuals.