A progressive tax system is designed to tax individuals based on their income levels, where those with higher incomes pay a larger percentage of their income in taxes compared to those with lower incomes. This is meant to distribute the tax burden more equitably across different income groups.

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A Progressive Tax

Question 109

Multiple Choice

A progressive tax:

A) takes the same percentage from all taxpayers, regardless of income.
B) requires those with low incomes to pay a smaller percentage of their income than high-income people.
C) is levied such that low-income taxpayers pay a greater proportion of their income than high-income taxpayers.
D) taxes everyone the same amount, regardless of income.

Correct Answer: