John has just received a rather large increase in salary, but he is upset because he feels that he should not be charged a higher rate of tax on this extra money. John is being taxed by a ________ tax system.
A) provincial
B) federal
C) progressive
D) restrictive
E) regressive

Question

Quizplus · Accepted Answer

A progressive tax system is one where the tax rate increases as the income increases. Therefore, John is being taxed at a higher rate on his increased salary, which is causing him to feel upset. In contrast, a regressive tax system would charge a higher tax rate on lower incomes, which would not be applicable in this scenario. Provincial and federal taxes refer to the level of government collecting the taxes, while restrictive is not a term commonly used to describe tax systems.

John Has Just Received a Rather Large Increase in Salary