Asked by Luqman Waheeduddin on Jul 16, 2024
Verified
A family that earns $20,000 a year pays $200 a year in clothing taxes. A family that earns $40,000 a year pays $800 a year in clothing taxes. The clothing tax is a ________ tax.
A) progressive
B) regressive
C) proportional
D) benefits-received
Clothing Tax
A specific tax imposed on the sale or purchase of clothing, which can vary by jurisdiction.
Proportional Tax
A tax system where the tax rate remains constant regardless of the amount subject to tax.
- Recognize and differentiate among proportional, progressive, and regressive taxation systems.
- Identify different forms of taxation (progressive, regressive, proportional) and understand their effects on income distribution.
Verified Answer
VN
Venessa NevarezJul 16, 2024
Final Answer :
A
Explanation :
The clothing tax is progressive because the amount of tax paid increases as the income level increases, which means higher-income families pay a higher percentage of their income in taxes compared to lower-income families.
Learning Objectives
- Recognize and differentiate among proportional, progressive, and regressive taxation systems.
- Identify different forms of taxation (progressive, regressive, proportional) and understand their effects on income distribution.