Question

In a progressive tax system, who pays a greater proportion of their income in taxes?

A. people with low incomes
B. people with high incomes
C. people who have the most deductions
D. Everyone pays the same.

Answer 1

B. people with high incomes

Step-by-step explanation:

A progressive tax system imposes high tax rates to high-income earners. In a progressive tax system, the applicable tax rates are based on income level. The higher the income, the higher the tax rate.

Low-income earners will be taxed at a lower rate, hence only a small proposition will be used for taxes. High-income earners will be taxed using a higher tax rate, meaning a bigger proposition of their income will be spent on taxes.