Indicate which of the following statements concerning the following tax rate structures is/are correct.

I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive

Question

Indicate which of the following statements concerning the following tax rate structures is/are correct.
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I.Tax Structure #1 is proportional.
II.Tax Structure #1 is regressive
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive
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Quizplus · Accepted Answer

Statement I is incorrect because Tax Structure #1 is not proportional, as the tax rate is higher for higher-income levels. Statement II is correct because as income increases, the tax rate decreases in Tax Structure #1. Statement III is correct because Tax Structure #2 is progressive because the tax rate increases as income increases. Statement IV is correct because Tax Structure #3 is progressive because the tax rate increases as income increases. Therefore, the correct choice is D, as only statements II and IV are correct.

Indicate Which of the Following Statements Concerning the Following Tax