In one economy, low-income people pay 10 percent of their income in taxes, and high-income people pay 18 percent of their income in taxes. This economy has a _____ tax system.

Question

Quizplus · Accepted Answer

A progressive tax system is one in which the tax rate increases as the taxable amount increases. In the given scenario, high-income people pay a higher percentage of their income in taxes compared to low-income people, which is characteristic of a progressive tax system.

In One Economy, Low-Income People Pay 10 Percent of Their