A progressive tax system is designed to take a larger percentage of income from those with higher incomes, and a smaller percentage from those with lower incomes. This means that those with lower incomes will pay a smaller portion of their income in taxes and those with higher incomes will pay a larger portion. Therefore, the correct option is B.

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A Progressive Tax

Question 98

Multiple Choice

A progressive tax:

A) takes the same percentage of taxes from income from all taxpayers.
B) requires those with low incomes to pay a smaller percentage of their income than high-income people.
C) is levied so that low-income taxpayers pay a greater proportion of their income toward taxes than high-income taxpayers.
D) taxes everyone the same amount, regardless of their income.

Correct Answer: