In 2005, the median income of renters was $26,317 and the median income of homeowners was $50,505.If imputed rent were added to household income or rent became deductible, the personal income tax would become
A)more progressive.
B)more regressive.
C)about proportional.
D)less progressive.

Question

Quizplus · Accepted Answer

Adding imputed rent to household income or making rent deductible would increase the taxable income of homeowners more than renters, as homeowners typically have higher incomes. This would make the tax system more progressive, as it would increase the tax burden on higher-income individuals relative to lower-income individuals.

In 2005, the Median Income of Renters Was $26,317 and the Median