Consider a system in which a person earning $10, 000 pays $1, 000 in taxes, a person earning $25, 000 pays $1, 000 in taxes and a person earning $60, 000 pays $1, 000 in taxes.What type of tax is this?

Question

Quizplus · Accepted Answer

This is a regressive tax system because the tax rate decreases as the income increases, meaning lower-income individuals pay a higher percentage of their income in taxes compared to higher-income individuals.

Consider a System in Which a Person Earning $10, 000