The figure below shows a simplified version of the current Canadian federal income- tax system. The marginal income- tax rates for the four ranges of income are 15 percent, 22 percent, 26 percent, and 29 percent, respectively. FIGURE 18- 2
-Refer to Figure 18- 2. What needs to be true about the four marginal income- tax rates in order for this tax system to be considered regressive?

Question

The figure below shows a simplified version of the current Canadian federal income- tax system. The marginal income- tax rates for the four ranges of income are 15 percent, 22 percent, 26 percent, and 29 percent, respectively.  FIGURE 18- 2
-Refer to Figure 18- 2. What needs to be true about the four marginal income- tax rates in order for this tax system to be considered regressive?

Quizplus · Accepted Answer

A regressive tax system is one where the tax rate decreases as income increases, which puts a disproportionate burden on low-income earners. If the marginal income-tax rates decrease as income increases, then the tax system is regressive.

The Figure Below Shows a Simplified Version of the Current