If a worker who earns $30,000 per year pays $6,000 in taxes, while a worker who earns $50,000 per year pays $9,000 in taxes, this income tax would represent a _____ tax.
A) flat
B) lump-sum
C) progressive
D) regressive

Question

Quizplus · Accepted Answer

A regressive tax takes a larger percentage of income from lower-income earners than from higher-income earners. Here, the lower-income worker pays 20% of their income in taxes, while the higher-income worker pays 18%, indicating a regressive tax.

If a Worker Who Earns $30,000 Per Year Pays $6,000