Asked by Megan Lawless on May 10, 2024
Verified
The U.S.federal income tax is progressive,which means that _____.
A) tax receipts grow at the same rate that income does
B) tax receipts grow at the same rate that government spending does
C) middle-income individuals pay more in taxes than either high-income or low-income individuals
D) the tax rate decreases with increases in income.
E) high-income individuals are taxed at a higher rate than low-income individuals
Progressive Tax
A tax system in which tax rates increase as the taxable amount increases, placing a higher burden on those with higher incomes.
Tax Receipts
The revenue collected by a government from taxes, which can include income, sales, and property taxes among others.
Income
The amount of money or goods and services that one receives in return for providing labor, producing goods, or investing capital.
- Pinpoint and delineate the part played by automatic stabilizers in economic modulation.
Verified Answer
AS
arshdeep singh mnoorMay 16, 2024
Final Answer :
E
Explanation :
A progressive tax means that as the taxable income of an individual or corporation increases, the tax rate on that income also increases. In the US federal income tax system, high-income individuals are taxed at a higher rate than low-income individuals, making option E the correct answer.
Learning Objectives
- Pinpoint and delineate the part played by automatic stabilizers in economic modulation.