Asked by Megan Shook on May 02, 2024
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Jake earned $15,000 and paid $1,500 of income tax,while Jill earned $40,000 and paid $6,000 of income tax.The tax rate structure they are subject to is:
A) Progressive.
B) Proportional.
C) Regressive.
D) Recessive.
Tax Rate Structure
Describes how tax rates progress from low to high depending on income levels, assets, or transactions, varying from progressive, regressive, or proportional.
Progressive
A taxation system in which the tax rate increases as the taxable amount increases, often applied to income tax.
Regressive
In taxation, regressive describes a tax that takes a smaller percentage of income as the income increases, often placing more burden on lower-income individuals.
- Differentiate among various tax rate frameworks, including progressive, proportional, and regressive systems.
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Learning Objectives
- Differentiate among various tax rate frameworks, including progressive, proportional, and regressive systems.
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