Asked by Kayla Ellison on May 14, 2024
Verified
A tax of $15 on an income of $200,$10 on an income of $300,and $8 on an income of $400 is:
A) constant-rate.
B) proportional.
C) progressive.
D) regressive.
Constant-rate
A process or condition that occurs at a steady, unchanging rate over time.
Regressive
Regressive, in economic terms, often refers to a tax system where the tax rate decreases as the taxable amount increases, imposing a greater burden on lower-income individuals.
- Differentiate the characteristics of progressive, proportional, and regressive tax structures.
Verified Answer
DA
Damon AdamsMay 15, 2024
Final Answer :
D
Explanation :
This is a regressive tax system because the tax rate decreases as the income increases.
Learning Objectives
- Differentiate the characteristics of progressive, proportional, and regressive tax structures.