A tax allocated based on a person's ability to pay,rather than,for example,requiring everyone to pay an equal percentage of their income,is known as a ______________ tax.

Question

A tax allocated based on a person's ability to pay,rather than,for example,requiring everyone to pay an equal percentage of their income,is known as a ______________ tax.​

Quizplus · Accepted Answer

A progressive tax is one that requires individuals with higher incomes to pay a larger percentage of their income in taxes, while those with lower incomes pay a smaller percentage. This type of tax is designed to be fairer, as it takes into account an individual's ability to pay. Mandatory, discretionary, and regressive taxes do not necessarily take into account a person's ability to pay in the same way. A flat tax requires everyone to pay the same percentage of their income, which does not take into account disparities in income levels.

A Tax Allocated Based on a Person's Ability to Pay,rather