Question

Save Submit Test for Grading Questions mclem06r ch03.152m Question 8 of 30 O Which of the following would indicate that income tax is progressive? a. High-income earners pay $3.000 in taxes: low-income earners pay $1,000 b. Low-income earners pay $3,000 in taxes: high-income earners pay $1,000 c. Both high income and low-income earners pay $1,000 each in taxes. d. High-income earners pay 20 percent of their income in taxes: low-income earners pay 10 percent. e. Both high-income and low-income earners pay 10 percent of their income in taxes

Answer 1

Progressive taxation is characterized by an increasing rate of taxation for higher incomes. The correct answer is 'd. High-income earners pay 20 percent of their income in taxes; low-income earners pay 10 percent.' correct option is D.

Step-by-step explanation:

The progressive taxation system is characterized by an increasing rate of taxation for individuals who earn more money. In a progressive tax system, low-income earners are taxed at a lower percentage of their income compared to high-income earners. This system serves to redistribute wealth in society, ensuring that those with higher incomes contribute a higher portion of their earnings to public funds. Therefore, in the question, the option that indicates a progressive income tax system is 'd. High-income earners pay 20 percent of their income in taxes; low-income earners pay 10 percent.'

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