Asked by Jacob Rucker on Jun 24, 2024
Verified
A regressive tax:
A) takes a higher percentage of income as income rises.
B) rises less than in proportion to income.
C) takes a fixed percentage of income regardless of the taxpayer's level of income.
D) takes a larger share of the income of high-income taxpayers than of low-income taxpayers.
Regressive Tax
A tax system wherein the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income earners.
- Determine and differentiate among the progressive, proportional, and regressive systems of taxation.
Verified Answer
MB
michael brianJun 25, 2024
Final Answer :
B
Explanation :
A regressive tax is characterized by taking a smaller percentage of income as the income increases, which means it rises less than in proportion to income. This contrasts with progressive taxes, which take a higher percentage from high-income earners.
Learning Objectives
- Determine and differentiate among the progressive, proportional, and regressive systems of taxation.