An income tax is regressive if
A) the tax liability of high-income recipients exceeds the tax liability of those with low incomes.
B) the tax liability of high-income recipients is less than the tax liability of those with low incomes.
C) high-income recipients pay a higher percentage of their incomes in taxes than those with low incomes.
D) high-income recipients pay a lower percentage of their incomes in taxes than those whose incomes are low.

Question

Quizplus · Accepted Answer

A regressive tax system means that low-income earners pay a higher percentage of their income in taxes than high-income earners. Therefore, option D is the correct answer as it states that high-income recipients pay a lower percentage of their incomes in taxes than those whose incomes are low.

An Income Tax Is Regressive If