Asked by Krista Hageman on Jul 11, 2024
Verified
A family that earns $20,000 a year pays $400 a year in city wage taxes. A family that earns $40,000 a year pays $1,400 a year in city wage taxes. The city wage tax is a ________ tax.
A) progressive
B) regressive
C) proportional
D) benefits-received
City Wage Tax
A local tax imposed on individuals who work in a city, calculated as a percentage of their wages or salaries.
Proportional
Describes a relationship where changes in one variable cause changes in another variable at a constant ratio or rate.
- Ascertain and distinguish the differences between proportional, progressive, and regressive taxation frameworks.
- Understand the diverse examples of tax systems (progressive, regressive, proportional) and their impact on earnings.
Verified Answer
MF
Makaila Foster 'student'Jul 14, 2024
Final Answer :
A
Explanation :
The tax increases as the income increases, which is characteristic of a progressive tax system.
Learning Objectives
- Ascertain and distinguish the differences between proportional, progressive, and regressive taxation frameworks.
- Understand the diverse examples of tax systems (progressive, regressive, proportional) and their impact on earnings.