Mr.Thomson has a before-tax income of $20,000, and he paid $2,000 in income tax.Ms.Lynch had a before-tax income of $10,000, and she paid $1,500 in income tax.What type of taxation system is this?

Question

Quizplus · Accepted Answer

A regressive taxation system means that low-income earners pay a higher percentage of their income in taxes compared to high-income earners. In this case, Mr. Thomson, with a higher income, paid only 10% of his income in taxes while Ms. Lynch paid 15% of her income in taxes despite earning less. This shows that the taxation system is regressive.

MrThomson Has a Before-Tax Income of $20,000, and He Paid