Scenario: There are 4 households in a locality. The annual income of the first household is $20,000, the annual income of the second household is $47,000, the annual income of the third household is $50,000, and the annual income of the fourth household is $71,000.
-Refer to the scenario above.If the income tax rate for the fourth household is higher than the income tax rate for the second household,it can be inferred that the government follows a ________ income tax system.

Question

Quizplus · Accepted Answer

A progressive income tax system means that the tax rate increases as the income level increases. In this scenario, the income of the fourth household is higher than the income of the second household, and if the tax rate for the fourth household is higher than the tax rate for the second household, then it can be inferred that the government follows a progressive income tax system.

Scenario: There Are 4 Households in a Locality