Consider a system in which a person earning $10,000 pays $1,000 in taxes, a person earning $25,000 pays $2,000, and someone earning $60,000 pays $4,000. This is an example of _____

Question

Quizplus · Accepted Answer

This system is an example of regressive taxation because the tax rate decreases as the amount subject to tax increases. In this scenario, individuals with higher incomes pay a smaller percentage of their income in taxes compared to those with lower incomes.

Consider a System in Which a Person Earning $10,000 Pays