Suppose an income tax is levied in the following way: All individuals pay 10 percent of their income up to an income of $30 000. On all income above $30 000, individuals pay 20 percent of their income. Such a tax is

Question

Quizplus · Accepted Answer

This income tax is considered progressive because the percentage of income paid in taxes increases as income increases. Those with higher incomes will pay a higher percentage of their income in taxes compared to those with lower incomes.

Suppose an Income Tax Is Levied in the Following Way