If Bill earns $40,000 a year and pays $10,000 in taxes, and Mike earns $70,000 a year and pays $21,000 in taxes, we can conclude that this tax system is

Question

Quizplus · Accepted Answer

A progressive tax system is one in which the tax rate increases as the income of the taxpayer increases. In this case, Bill pays 25% of his income in taxes while Mike pays 30% of his income in taxes. This means the tax rate increases as the income increases, making it a progressive tax system.

If Bill Earns $40,000 a Year and Pays $10,000 in Taxes