The following data represent a personal income tax schedule.Answer the question on the basis of this information. $$\begin{array} { c c }
\text { Taxable Income } & \text { Total Tax } \
\hline
\$ 0 & \$ 0 \
2,000 & 200 \
4,000 & 600 \
6,000 & 1,200 \
8,000 & 2,000 \
10,000 & 3,000
\end{array}$$ Refer to the table.This tax is such that the after-tax distribution of income will be:

Question

The following data represent a personal income tax schedule.Answer the question on the basis of this information. $$\begin{array} { c c } 
\text { Taxable Income } & \text { Total Tax } \
\hline
\$ 0 & \$ 0 \
2,000 & 200 \
4,000 & 600 \
6,000 & 1,200 \
8,000 & 2,000 \
10,000 & 3,000
\end{array}$$ Refer to the table.This tax is such that the after-tax distribution of income will be:

Quizplus · Accepted Answer

The tax schedule is progressive, meaning that as income increases, the tax rate also increases. This leads to a more equal distribution of after-tax income compared to the before-tax distribution, as those with higher incomes pay a higher percentage of their income in taxes.

The Following Data Represent a Personal Income Tax Schedule Refer to the Table