The current U.S.income tax system requires taxpayers to pay a higher marginal tax rate on higher levels of taxable income.Suppose that the tax rate is 10% on the first $15,000 of taxable income,15% on the next $45,000 of taxable income,30% on the next $60,000 of taxable income,and 35% on taxable income above $120,000.
An income tax system like the one described is

Question

Quizplus · Accepted Answer

A progressive tax system is one where the tax rate increases as the taxpayer's income increases. This is exactly what the current U.S. income tax system does, with higher marginal tax rates on higher levels of taxable income. Therefore, Choice A is the correct answer. Choice B (regressive tax system) would be one where the tax burden falls disproportionately on lower-income earners, which is not the case here. Choice C (proportional tax system) would be one where everyone pays the same percentage of their income in taxes, which is also not the case here. Choice D (progressive when income is low, then regressive) is not accurate as the tax system remains progressive throughout all income levels, even though the rate of increase may vary.

The Current U