Use the following to answer question:
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a regressive income tax?

Question

Use the following to answer question: 
-(Figure: Income Tax Payments)Use Figure: Income Tax Payments.Which panel or panels BEST represent the effects of a regressive income tax?

Quizplus · Accepted Answer

A regressive income tax system imposes a higher tax rate on low-income earners than on high-income earners. Panel C best represents this as it shows a decreasing tax rate as income increases, which is characteristic of a regressive tax system.

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