Question

The federal individual income tax system in the United States uses a(n) ________________ tax structure.

A) Progressive
B) Regressive
C) Proportional
D) Flat

Answer 1

The U.S. federal individual income tax system is progressive, meaning higher income individuals pay a higher rate of taxation.

Step-by-step explanation:

The federal individual income tax system in the United States uses a progressive tax structure. In a progressive system, the rate of taxation increases as an individual's income increases. For example, incomes between $50,000 and $80,000 might be taxed at a lower percentage, while higher incomes, such as those between $300,000 and $1,000,000, would be taxed at a substantially higher percentage. This ensures that those with higher incomes pay a higher share of taxes out of their income than those with lower incomes.