Question

A tax of $100 on an income of $1,000,$250 on an income of $2,000, and $600 on an income of $3,000 is:

a) progressive.
b) proportional.
c) regressive.
d) flat.

Answer 1

The tax described in the question is progressive.

Step-by-step explanation:

The tax described in the question is progressive.

A progressive tax is one where the tax rate increases as the income increases. In this case, the tax rate increases from $100 on an income of $1,000, to $250 on an income of $2,000, and finally to $600 on an income of $3,000.

As we can see, the tax burden increases along with the increase in income, making it a progressive tax.