____ taxes are based on one's ability to pay.

Question

Quizplus · Accepted Answer

Progressive taxes are designed to take a larger percentage of income from individuals with higher incomes, based on the principle of ability to pay. This means that those who earn more pay a higher portion of their income in taxes, while those who earn less pay a lower portion. Regressive taxes, on the other hand, take a larger percentage of income from individuals with lower incomes, which means that those who are less able to afford it pay a higher percentage of their income in taxes. Marginal taxes refer to the tax rate that applies to the highest portion of an individual's income, and may or may not be progressive.

____ Taxes Are Based on One's Ability to Pay