Refer to the information provided in Table 19.1 below to answer the question that follows.
Table 19.1 $$\begin{array} { c c c c }
\text { Total Income} &\text { Total Taxes } & \begin{array} { c }
\text { Average Tax } \
\text { Rate }
\end{array} & \begin{array} { c }
\text { Marginal Tax } \
\text { Rate }
\end{array} \
\hline \$ 5,000 & \$ 750 & 0.15 & 0.15 \
\$ 10,000 & \$ 1,200 & 0.12 & 0.09 \
\$ 15,000 & \$ 1,500 & 0.10 & 0.06 \
\$ 20,000 & \$ 1,600 & 0.08 & 0.0 \
\hline
\end{array}$$
-Refer to Table 19.1. The tax rate structure in this example is

Question

Refer to the information provided in Table 19.1 below to answer the question that follows.
Table 19.1 $$\begin{array} { c c c c } 
\text { Total Income} &\text { Total Taxes } & \begin{array} { c } 
\text { Average Tax } \
\text { Rate }
\end{array} & \begin{array} { c } 
\text { Marginal Tax } \
\text { Rate }
\end{array} \
\hline \$ 5,000 & \$ 750 & 0.15 & 0.15 \
\$ 10,000 & \$ 1,200 & 0.12 & 0.09 \
\$ 15,000 & \$ 1,500 & 0.10 & 0.06 \
\$ 20,000 & \$ 1,600 & 0.08 & 0.0 \
\hline
\end{array}$$
-Refer to Table 19.1. The tax rate structure in this example is

Quizplus · Accepted Answer

The tax rate structure is regressive because the average tax rate decreases as the total income increases, indicating that individuals with higher incomes pay a smaller percentage of their income in taxes compared to those with lower incomes.

Refer to the Information Provided in Table 19 -Refer to Table 19