The table below shows tax payments made for various incomes. According to the information in the table below, the tax system is:

Question

Quizplus · Accepted Answer

The tax system is regressive because the percentage of income paid in taxes decreases as income increases. For example, someone with an income of $5,000 pays 20% of their income in taxes, while someone with an income of $50,000 pays only 10% of their income in taxes. This means that the tax burden is heavier on lower-income earners and lighter on higher-income earners.

The Table Below Shows Tax Payments Made for Various Incomes