Asked by Candace Shields on Jul 08, 2024
Verified
Paying a tax of $20 on an income of $100,a tax of $15 on an income of $200,and a tax of $12 on an income of $300 is an example of a _____ tax.
A) flat
B) proportional
C) progressive
D) regressive
Flat Tax
A tax system with a constant marginal rate, usually applied to individual or corporate income, where everyone pays the same percentage regardless of income level.
- Discern the differences among progressive, proportional, and regressive taxes.
Verified Answer
PH
Progga HassanJul 15, 2024
Final Answer :
D
Explanation :
This is an example of a regressive tax because the tax rate decreases as the income increases. The higher the income, the lower the percentage of income paid in tax.
Learning Objectives
- Discern the differences among progressive, proportional, and regressive taxes.