Asked by Bianca Galvez-Azanon on May 14, 2024
Verified
A tax that takes a higher percentage of income as income rises is:
A) proportional.
B) an ability tax.
C) progressive.
D) regressive.
Progressive Tax
A tax system in which the tax rate increases as the taxable amount increases, placing a higher tax burden on wealthier individuals.
- Pinpoint and discern the differences between progressive, proportional, and regressive tax systems.
Verified Answer
HS
Harry SinghMay 18, 2024
Final Answer :
C
Explanation :
A tax that takes a higher percentage of income as income rises is called a progressive tax. This means that as a person's income increases, their tax rate also increases. Therefore, the tax system is designed to tax people who earn more at a higher rate, and those who earn less at a lower rate.
Learning Objectives
- Pinpoint and discern the differences between progressive, proportional, and regressive tax systems.