Suppose that Justin Trudeau initiates a revision of the federal income tax structure such that the tax rate is 10% on all income up to $50 000.Any income above $50 000 is not taxed.This payroll tax will be:

Question

Quizplus · Accepted Answer

A regressive tax is one where the tax rate decreases as the income level increases. In this case, since income above $50,000 is not taxed, the effective tax rate decreases as income increases, making it regressive.

Suppose That Justin Trudeau Initiates a Revision of the Federal