Asked by
Jeannette Vande Veegaete
on Dec 11, 2024
Verified
Which of the following examples illustrates a progressive income tax?
A) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes.
B) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $50 in taxes.
C) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $80 in taxes.
D) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.
Progressive Income Tax
A tax system where the tax rate increases as the taxable amount increases, meaning higher income earners pay a larger percentage of their income in taxes compared to lower income earners.
- Comprehend the influence of progressive, proportional, and regressive taxes on individuals across different earnings levels.
Verified Answer
JR
Learning Objectives
- Comprehend the influence of progressive, proportional, and regressive taxes on individuals across different earnings levels.