Asked by Bipul TIWARI on Jun 04, 2024

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An example of a tax that is generally regarded to be progressive is

A) the federal income tax.
B) the excise tax on gasoline.
C) the state sales tax.
D) the payroll tax.

Progressive Tax

A tax system where the tax rate increases as the taxable amount or income increases, placing a larger burden on those who have the ability to pay more.

Federal Income Tax

A charge imposed by the US federal government on the yearly income of persons, companies, trusts, and various legal bodies.

Excise Tax

A tax on the sale or consumption of a specific product or service, often levied at the point of manufacture or sale.

  • Understand the concept and characteristics of progressive, regressive, and proportional taxes.
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ZK
Zybrea KnightJun 06, 2024
Final Answer :
A
Explanation :
The federal income tax is generally regarded as a progressive tax because it is based on a taxpayer's ability to pay. Those with higher incomes pay a higher percentage of their income in taxes, which helps to redistribute wealth and reduce inequality.