The payroll tax appears to be a proportional tax.In reality, it is
A)highly progressive.
B)actually proportional.
C)highly regressive.
D)regressive on low-income persons and progressive on high-income persons.

Question

Quizplus · Accepted Answer

The payroll tax is highly regressive because it is levied on wage earners and does not take into account a person's ability to pay. It is a flat tax up to a certain income level, after which it is no longer collected. This means that low-income earners pay a higher percentage of their income in payroll taxes than high-income earners.

The Payroll Tax Appears to Be a Proportional Tax