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Consider a System in Which a Person Earning $10,000 Pays

Question 107

Multiple Choice

Consider a system in which a person earning $10,000 pays $1,000 in taxes,a person earning $25,000 pays $2,000,and someone earning $60,000 pays $4,000.This is an example of:


A) progressive taxation.
B) proportional taxation.
C) regressive taxation.
D) a property tax.
E) a tax based on the benefits-principle of taxation.

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