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1 vote
How does a progressive taxation system work?

O A. It makes all citizens pay the same percentage of their income in
taxes.
B. It makes wealthier citizens pay a higher percentage of their
income in taxes.
C. It requires all citizens to pay all of their income in taxes for
redistribution.
O D. It makes less wealthy citizens pay a higher percentage of their
income in taxes.

User RandomB
by
5.2k points

2 Answers

1 vote

Answer:

B

Step-by-step explanation:

it makes wealthier citizens pay higher percentage of taxes. it's a terrible economic policy.

User Rajohan
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4 votes

Final answer:

A progressive taxation system is one in which the tax rate increases with the taxable income. Under this system, wealthier individuals pay a higher percentage of their income in taxes than less wealthier ones. Therefore, the correct choice is B: a progressive taxation system makes wealthier citizens pay a higher percentage of their income in taxes.

Step-by-step explanation:

A progressive taxation system is a type of tax system in which the tax rate increases as the taxable amount increases. Essentially, wealthier individuals are taxed at a higher rate than those with lower incomes. This method is based on the principle that those who have more financial means, or earning capacity, should contribute more in taxes.

For instance, let's imagine that under a progressive tax system, those who earn less than $50,000 a year pay 10% of their income in taxes, those who earn between $50,000 and $100,000 pay 20%, and those who earn above $100,000 pay 30%. So in essence, the more you earn, the higher the percentage of your income goes to pay taxes.

Affirmation of the correct choice

Based on this explanation, your correct choice is B: a progressive taxation system makes wealthier citizens pay a higher percentage of their income in taxes.

Learn more about Progressive Taxation System

User Edwin Beltran
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