Asked by
yaumel delgado
on Nov 11, 2024
Verified
Which of the following would indicate that income tax is progressive?
A) High-income people pay $3,000 in taxes;low-income people pay $1,000.
B) Low-income people pay $3,000 in taxes;high-income people pay $1,000.
C) Both high-income and low-income people pay $1,000 each in taxes.
D) High-income people pay 20 percent of their income in taxes;low-income people pay 10 percent.
E) Both high-income and low-income people pay 10 percent of their income in taxes.
Progressive Tax
A tax system in which the tax rate increases as the taxable amount increases, thereby imposing a higher percentage rate on higher-income earners.
High-Income
Earning a substantial amount of money, typically above the median income level in a given region or country.
Low-Income
Referring to individuals or families whose earnings are significantly lower than the average, often quantified by government standards.
- Acquire knowledge on the premise, principles, and consequences of various taxing mechanisms.
Verified Answer
XG
Learning Objectives
- Acquire knowledge on the premise, principles, and consequences of various taxing mechanisms.