A tax collects $3,000 per year from a family with an income of $25,000 and takes $4,000 per year from a family with an income of $50,000.What type of taxation plan is this?

Question

Quizplus · Accepted Answer

The tax collects a higher percentage of income from the family with the lower income (12% of income for the $25,000 family versus 8% for the $50,000 family), making it a regressive taxation plan.

A Tax Collects $3,000 Per Year from a Family with an Income