John earns $25,000 and pays $2,000 in taxes.Marcy earns $60,000 and pays $4,000 in taxes.How would you characterize this tax system?

Question

Quizplus · Accepted Answer

In a regressive tax system, individuals with lower incomes pay a higher percentage of their income in taxes compared to individuals with higher incomes. John, with a lower income, pays 8% ($2,000/$25,000) of his income in taxes, while Marcy, with a higher income, pays only about 6.67% ($4,000/$60,000) of her income in taxes, indicating a regressive system.

John Earns $25,000 and Pays $2,000 in Taxes