The amount of tax owed by a family is:
A)not simply proportional to its total income
B)largely unaffected by deductions
C)total income minus tax credits
D)some constant fraction of income

Question

Quizplus · Accepted Answer

The amount of tax owed by a family is not simply proportional to its total income, as tax rates are progressive and depend on income brackets. Deductions can also significantly affect the amount of tax owed. Tax credits can reduce the amount of tax owed but are not necessarily equal to the total income minus tax credits. The tax owed is not a constant fraction of income, as it varies with income level and other factors.

The Amount of Tax Owed by a Family Is