Asked by Veronica Krall on Jul 21, 2024
Verified
If you pay a $2,000 tax on $10,000 of taxable income and a $4,000 tax on a taxable income of $16,000, the tax is progressive.
Taxable Income
The portion of an individual or entity's income that is subject to tax by governmental authorities, after deductions and exemptions.
Progressive
A political and social philosophy advocating for changes and reforms through governmental action in order to achieve a more equitable society.
- Comprehend the concepts behind progressive, regressive, and proportional taxation structures.
- Grasp the concept of marginal tax rates and how they apply to additional income.
Verified Answer
TT
tolaa touchJul 24, 2024
Final Answer :
True
Explanation :
The tax is progressive because the amount of tax paid increases at a higher rate than the increase in taxable income, indicating a higher percentage of tax is applied as income increases.
Learning Objectives
- Comprehend the concepts behind progressive, regressive, and proportional taxation structures.
- Grasp the concept of marginal tax rates and how they apply to additional income.