Question

In the United States, people are sorted into different tax brackets so that they pay differing amounts of taxes based on their income level. Which type of tax system does this BEST demonstrate?

A. regressive
B. progressive
C. proportional
D. flat

Answer 1

Progressive

Step-by-step explanation:

Got it right on the test nun to worry about.

Answer 2

B. progressive

Step-by-step explanation:

In a progressive tax system, the tax rate imposed on individuals and firms is based on their income levels. A low tax rate is applied to low-income earners. As income levels increases, the tax rate also increases. This means that the poor are taxed using lower tax rates compared to the wealthy.

A progressive tax system promotes equity and fair distribution of wealth. The poor have little; hence pay low taxes while the rich pay higher amounts.