Country A's tax system is one where every citizen pays tax on earned income over $12,000 per year. The amount of tax paid as a percentage of income rises as individuals income levels rise. Which of the following describes the nature of the tax paid by individuals in Country A?

Question

Quizplus · Accepted Answer

The tax system in Country A is progressive because the tax rate increases as the income level of individuals rises.

Country A's Tax System Is One Where Every Citizen Pays