Which of the following taxes is regressive? Raj pays a 10% tax on the first $10,000 he earns plus a _____ tax on any additional income.

Question

Quizplus · Accepted Answer

Since Raj pays a flat 10% tax on the first $10,000 he earns, this tax is proportional. However, any additional income is taxed at a lower rate of 5%, which makes it regressive since lower income individuals will be paying a higher percentage of their income in taxes compared to higher income individuals.

Which of the Following Taxes Is Regressive? Raj Pays a 10