Jurisdiction M imposes an individual income tax based on the following schedule.
Rate $\quad$$\quad$Income bracket
5% $\quad$$\quad$ $\quad$ $-0- to $50,000
+ 8% $\quad$$\quad$$\quad$$50,001 to $200,000
+ 12% $\quad$$\quad$ $200,001 and above
Which type of rate structure does this tax use?

Question

Quizplus · Accepted Answer

This tax uses a multi-bracket progressive rate structure, where the tax rate increases as income increases. The tax rate of 5% applies to income up to $50,000, the tax rate of 8% applies to income between $50,001 and $200,000, and the tax rate of 12% applies to income above $200,000. This means that those with higher incomes will pay a higher percentage of their income in taxes, making this a progressive tax.

Jurisdiction M Imposes an Individual Income Tax Based on the Following