A tax provision has been discussed that would add an additional marginal tax rate of 39% to be applied to an individual's taxable income in excess of $800,000. If this provision were to become law, what overall distributional impact would it have on our current income tax system?

Question

Quizplus · Accepted Answer

A progressive tax system imposes a higher tax rate on higher income levels. Adding a 39% marginal tax rate for income over $800,000 would increase the tax burden on higher-income individuals, making the system more progressive.

A Tax Provision Has Been Discussed That Would Add an Additional