People earning a higher income pay fewer tax dollars than lower income earners in a regressive tax and pay more tax dollars than lower income earners in a progressive tax.

Question

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The statement is incorrect. In a regressive tax system, individuals with lower incomes pay a larger proportion of their income in taxes than those with higher incomes. In a progressive tax system, individuals with higher incomes pay a higher percentage of their income in taxes than those with lower incomes. Therefore, the statement should be reversed: higher income earners pay fewer tax dollars in a regressive tax and more tax dollars in a progressive tax system.

People Earning a Higher Income Pay Fewer Tax Dollars Than