You are trying to design a tax system that will simultaneously achieve both of the following goals: 1)two people with the same total income would pay taxes of the same amount,and 2)a high-income person would pay a higher fraction of income in taxes than a low-income person.Which of the following tax systems could achieve both goals?

Question

Quizplus · Accepted Answer

A progressive tax system is designed in a way that the tax rates increase as income levels increase. This allows for a high-income individual to pay a higher fraction of their income in taxes than a low-income individual, fulfilling the second goal. At the same time, the progressive tax system ensures that two individuals with the same total income would pay the same amount of taxes, fulfilling the first goal. Therefore, a progressive tax system is the best choice for achieving both goals simultaneously.

You Are Trying to Design a Tax System That Will