Karl earns $25,000 while Angela earns $40,000.If they are subject to a regressive tax structure,

Name: Karl earns $25,000 while Angela earns $40,000.If they are subject to a regressive tax structure,
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

In a regressive tax structure, the rate of tax decreases as the income increases. Therefore, Karl with a lower income of $25,000 will pay a larger percentage of his income in taxes compared to Angela with a higher income of $40,000. So, Karl will pay a larger percentage of his income in taxes.

Karl Earns $25,000 While Angela Earns $40,000