Suppose Javier earns $50,000 per year and pays $500 in taxes, while Camilla earns $100,000 per year and pays $20,000 in taxes. This tax system must be:

Question

Quizplus · Accepted Answer

This tax system is progressive because the higher income earner, Camilla, pays a higher percentage of her income in taxes compared to Javier, the lower income earner. This indicates that the tax rate increases as the taxable amount increases.

Suppose Javier Earns $50,000 Per Year and Pays $500 in Taxes