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

Question

Quizplus · Accepted Answer

The tax system is regressive as the tax rate decreases as income increases. This can be seen in the decreasing marginal tax rates from 20% to 15% to 10% for incomes of $10,000, $30,000, and $50,000, respectively. Additionally, the total tax paid as a percentage of income decreases as income increases. For example, someone with an income of $10,000 pays $2,000 in taxes, which is 20% of their income, while someone with an income of $50,000 pays $4,000 in taxes, which is only 8% of their income.

The Table Below Shows Taxes Paid for Various Incomes