Use the following to answer questions: This table shows data on taxes paid by three individuals living in each of three countries: A, B, and C. The tax paid in dollars is based on the marginal tax rates assessed in each of the three countries. Assume that each individual earns an income of exactly $37,000 and there are no deductions or exemptions that need to be applied.
Table: A Cross-Country Comparison $\begin{array}{cccccc}
\text { COUNTRY A } & &\text { COUNTRY B } && \text { COUNTRY C }\
\hline \begin{array}{c}
\text { Household } \
\text { Income }
\end{array} & \begin{array}{c}
\text { Tax Paid } \
\text { In Dollars }
\end{array} & \begin{array}{c}
\text { Household } \
\text { Income }
\end{array} & \begin{array}{c}
\text { Tax Paid } \
\text { In Dollars }
\end{array} & \begin{array}{c}
\text { Household } \
\text { Income }
\end{array} & \begin{array}{c}
\text { Tax Paid } \
\text { In Dollars }
\end{array} \
\hline \$ 5,000 & \$ 1,000 & \$ 5,000 & \$ 500 & \$ 5,000 & \$ 500 \
15,000 & 1,000 & 15,000 & 2,250 & 15,000 & 1,500 \
25,000 & 1,000 & 25,000 & 5,000 & 25,000 & 2,500 \
35,000 & 1,000 & 35,000 & 8,750 & 35,000 & 3,500
\end{array}$
-(Table: A Cross-Country Comparison) According to the data in the table, which country has a regressive tax rate system?

Question

Quizplus · Accepted Answer

Country A has a regressive tax rate system because the tax paid remains constant at $1,000 regardless of the increase in income, meaning the effective tax rate decreases as income increases.

Use the Following to Answer Questions: This Table Shows Data