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Indicate whether the scenarios are examples of regressive or progressive taxes.

A) Progressive: Higher income taxed at a higher rate
B) Regressive: Flat rate applied to all income levels
C) Progressive: Lower income taxed at a higher rate
D) Regressive: Lower income taxed at a lower rate

1 Answer

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Final answer:

The scenarios A and C are examples of progressive taxes, while B and D are examples of regressive taxes.

Step-by-step explanation:

The scenarios A) Progressive: Higher income taxed at a higher rate and C) Progressive: Lower income taxed at a higher rate are examples of progressive taxes. In a progressive tax system, higher income individuals pay a higher percentage of their income in taxes. Scenarios B) Regressive: Flat rate applied to all income levels and D) Regressive: Lower income taxed at a lower rate are examples of regressive taxes. In a regressive tax system, lower income individuals pay a higher percentage of their income in taxes compared to higher income individuals.

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