Asked by
Ivory Channell
on Dec 16, 2024Verified
Katie had a before-tax income of $40,000 and paid taxes of $6,000.Rinji had a before-tax income of $35,000 and paid taxes of $5,250.Based on this information,the tax system is:
A) regressive for all income levels.
B) proportional.
C) progressive.
D) based on the ability-to-pay principle.
E) regressive for income levels between $35,000 and $40,000.
Regressive Tax
A tax that takes a larger percentage from low-income earners than from high-income earners, considered regressive because it affects those who are less able to pay.
Proportional Tax
A tax system where the tax rate is fixed and the same for all income levels.
Progressive Tax
A taxation system where the tax rate increases as the taxable amount or income of the individual or entity increases.
- Be informed about the reasoning, essentials, and outcomes of various taxation methodologies.
Verified Answer
KG
Learning Objectives
- Be informed about the reasoning, essentials, and outcomes of various taxation methodologies.