Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,500 per year. Based on this information, the income tax system is

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Quizplus · Accepted Answer

The income tax system is progressive because as your income increases, your tax rate also increases. In this case, when the individual's income increased by $10,000, their tax liability increased by $1,500 (from $5,000 to $6,500), which is a higher percentage increase than the percentage increase in their income.

Suppose You Are Making $50,000 Per Year and Paying $5,000