A tax that takes a larger share of poor people's income than wealthy people's income is known as a ________ tax.

Question

Quizplus · Accepted Answer

A regressive tax takes a larger percentage of income from low-income earners compared to high-income earners. This is because the tax rate remains constant regardless of income level. Therefore, option D is the correct answer. Progressive tax, on the other hand, takes a higher percentage of income from those with higher income levels. Mandatory and discretionary taxes refer to whether the tax is a requirement or optional, and flat tax is a tax where everyone pays the same percentage of their income regardless of income level.

A Tax That Takes a Larger Share of Poor People's