The 2010 U.S. Federal Personal Income six tax brackets range from 10 percent for individuals earning less than $8,025 to 35 percent for those earning over $357,700 whereas the Lithuanian tax rate for all citizens' income is 24 percent. The Lithuanian income tax system is a ________ tax and the U.S. income tax system is a ________ tax.

Question

Quizplus · Accepted Answer

The Lithuanian tax system is proportional because it applies a flat rate of 24% to all income levels. The U.S. tax system is progressive because tax rates increase with higher income brackets.