The payroll tax is a
A)progressive tax.
B)neutral tax.
C)regressive tax.
D)proportional tax.

Question

Quizplus · Accepted Answer

The payroll tax is considered a regressive tax because it takes a larger percentage of income from lower-income earners than from higher-income earners. This is because the payroll tax is a fixed percentage of income up to a certain amount, so those who earn less have a larger portion of their income subject to the tax.

The Payroll Tax Is a