Asked by Bailey Ennis on May 15, 2024
Verified
A regressive tax takes a:
A) fixed percentage of income.
B) lower percentage of income as income rises.
C) higher percentage of income as income rises.
D) lower percentage of income as income falls.
Regressive Tax
A tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases, disproportionately affecting lower-income individuals.
- Recognize and distinguish among progressive, proportional, and regressive tax structures.
Verified Answer
AZ
Aleah ZainulMay 19, 2024
Final Answer :
B
Explanation :
A regressive tax is characterized by taking a lower percentage of income as income rises, making it less burdensome for higher-income individuals relative to lower-income individuals.
Learning Objectives
- Recognize and distinguish among progressive, proportional, and regressive tax structures.