If the taxes by state and local governments were combined with the federal tax system, the overall tax structure in the U.S. would best be characterized as

Question

Quizplus · Accepted Answer

When state and local taxes are combined with federal taxes, the overall tax structure in the United States still remains progressive. This is because the federal income tax is progressive, meaning that higher-income individuals are subject to a higher tax rate. Though state and local taxes may be regressive, their contribution to the overall tax structure is relatively small compared to federal taxes. Therefore, when combined, the progressive federal tax system outweighs the potentially regressive state and local taxes.

If the Taxes by State and Local Governments Were Combined