Question

Drag the tiles to the correct boxes to complete the pairs. Match each type of tax to its description. Rose earns $100,000 a year, and Jack earns $50,000 a year. They each buy the same model of television and pay $200 in sales tax. Mia’s income tax rate increased when she got a promotion and a raise. Mr. Brown and Mr. Joseph earn different annual incomes. However, they both pay income tax equivalent to 15% of their income.

a) Proportional tax
b) Regressive tax
c) Progressive tax

Answer 1

Rose and Jack's equal sales tax on the same television represents a regressive tax. Mia's increased income tax rate upon getting a raise illustrates a progressive tax. Mr. Brown's and Mr. Joseph's identical income tax rates regardless of earnings typify a proportional tax.

Step-by-step explanation:

When matching each type of tax to its description based on the given scenarios:

• Rose and Jack paying the same amount of sales tax on television indicates a regressive tax, as the tax represents a larger percentage of income for the person with the lower income.
• Mia experiencing a higher income tax rate with a raise and promotion is an example of a progressive tax, where higher earners pay a higher percentage of their income in taxes.
• Mr. Brown and Mr. Joseph paying an equal percentage of their incomes, regardless of the differences in their earnings, demonstrates a proportional tax, where the tax rate is the same for everyone.

These examples are reflective of the U.S. tax system, which is designed to balance the tax burden across different income groups using various types of taxation methods.