Asked by
SAMSON, KARYNA ANNE
on Dec 11, 2024
Verified
Which of the following examples illustrates a regressive income tax?
A) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $90 in taxes.
B) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes.
C) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $110 in taxes.
D) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.
Regressive Income Tax
A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.
- Understand the consequences of progressive, proportional, and regressive tax systems on differing income brackets.
Verified Answer
JD
Learning Objectives
- Understand the consequences of progressive, proportional, and regressive tax systems on differing income brackets.