Mr. Thomson had a before-tax income of $20,000 and paid taxes of $2,000. Ms. Lynch had a before-tax income of $10,000 and paid taxes of $1,500. Based on this information, which of the following is correct?

Question

Quizplus · Accepted Answer

The tax system is regressive because Ms. Lynch, who has a lower before-tax income than Mr. Thomson, paid a higher percentage of her income in taxes. This means that as income decreases, the percentage of income paid in taxes increases.

Mr Thomson Had a Before-Tax Income of $20,000 and Paid