The following data represent a personal income tax schedule. Refer to the above table.This tax is such that the after-tax distribution of income will be:

Question

The following data represent a personal income tax schedule.  Refer to the above table.This tax is such that the after-tax distribution of income will be:

Quizplus · Accepted Answer

This tax schedule is progressive, meaning that as income increases, the tax rate also increases. Therefore, individuals with higher incomes will have a larger percentage of their income taxed, and individuals with lower incomes will have a smaller percentage of their income taxed. This will result in a more equal distribution of after-tax income compared to the before-tax distribution.

The Following Data Represent a Personal Income Tax Schedule