Asked by Rocio Lopez on May 12, 2024
Verified
The amount of income tax owed by a family is
A) unaffected by deductions.
B) total income minus tax credits.
C) not simply proportional to its total income.
D) a constant fraction of income.
Income Tax
A tax levied by governments on individuals or entities based on their income or profits.
- Determine tax responsibilities and applicable rates in specified contexts, and recognize the gradational characteristics of tax systems.
Verified Answer
BS
Bradley SmithMay 16, 2024
Final Answer :
C
Explanation :
The amount of income tax owed by a family is not simply proportional to its total income due to the progressive nature of tax systems, deductions, and credits.
Learning Objectives
- Determine tax responsibilities and applicable rates in specified contexts, and recognize the gradational characteristics of tax systems.