Asked by Heather Smith on May 21, 2024

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An income tax is progressive if the

A) absolute amount paid as taxes varies directly with income.
B) percentage of income paid as taxes is the same regardless of the size of income.
C) percentage of income paid as taxes increases as income increases.
D) tax rate varies inversely with income.

Progressive Tax

A progressive tax is a tax system where the tax rate increases as the taxable amount or income goes up, placing a higher burden on wealthier individuals.

Absolute Amount

A total figure or quantity without any adjustments, reductions, or modifications, representing a raw or unadjusted figure.

Tax Rate

The percentage at which an individual or corporation is taxed.

  • Understand the definition and characteristics of progressive, regressive, and proportional taxes.
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AJ
Anizia JosephMay 25, 2024
Final Answer :
C
Explanation :
A progressive tax system is characterized by the percentage of income paid in taxes increasing as the income of the taxpayer increases. This means that higher-income individuals pay a larger percentage of their income in taxes compared to lower-income individuals.