Senator Smith proposes that the income tax structure be revised to have two tax rates.The first,16 percent,applies to persons whose income is between $0 and $40,000 a year.The second,23 percent,applies to persons whose income is more than $40,000 a year.This is a
A) regressive income tax structure.
B) proportional income tax structure.
C) progressive income tax structure.
D) cyclical income tax structure.

Question

Quizplus · Accepted Answer

A progressive income tax structure is one in which individuals with higher incomes pay a higher percentage of their income in taxes. In this case, individuals with incomes below $40,000 would pay a lower tax rate of 16 percent, while those with incomes over $40,000 would pay a higher tax rate of 23 percent. Therefore, this proposal is an example of a progressive income tax structure, as it would result in a higher tax burden for higher-income individuals.

Senator Smith Proposes That the Income Tax Structure Be Revised