Exhibit 16-1 Income for two persons

-In Exhibit 16-1,if the income tax system is progressive,then:

Question

Exhibit 16-1 Income for two persons
 
-In Exhibit 16-1,if the income tax system is progressive,then:

Quizplus · Accepted Answer

If the income tax system is progressive, then individuals with higher income will face a higher tax rate than those with lower income. In Exhibit 16-1, Elaine has a higher income than Daniel, thus she will face a higher tax rate and will have a larger tax bill than Daniel. Therefore, option C is the correct answer. Option A and B are incorrect because they assume that Elaine and Daniel will face the same tax rate. Option D and E are also incorrect because they assume that Elaine will face a lower tax rate than Daniel, which is not the case in a progressive tax system.

Exhibit 16-1 Income for Two Persons