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 fourth household pays the lowest percentage of its income in tax,it can be inferred that the government follows a ________ tax system.

Question

Quizplus · Accepted Answer

A regressive tax system means that the tax burden falls more heavily on lower-income individuals or households. If the fourth household pays the lowest percentage of its income in tax, this suggests that the tax system is less burdensome on higher-income households, making it regressive.

Scenario: There Are 4 Households in a Locality