Suppose an income tax is levied in the following way: All individuals pay 10% of their income up to an income of $30 000.On all income above $30 000,individuals pay 20% of their income.Such a tax is
A)regressive.
B)progressive.
C)indexed.
D)proportional.
E)unrealistic.

Question

Quizplus · Accepted Answer

This tax is progressive because individuals with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. The tax rate increases after a certain threshold (income of $30,000) which targets higher earners.

Suppose an Income Tax Is Levied in the Following Way