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

I.Tax Structure #1 is regressive.
II.Tax Structure #1 is proportional
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 regressive.
II.Tax Structure #1 is proportional
III.Tax Structure #2 is progressive.
IV.Tax Structure #3 is progressive
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Quizplus · Accepted Answer

Tax Structure #1 is regressive because the tax rate decreases as the income increases. Tax Structure #2 is proportional because the tax rate remains the same regardless of income level. Tax Structure #3 is progressive because the tax rate increases as the income increases. Therefore, statements I and IV are correct. Statement II is incorrect because Tax Structure #1 is not proportional. Statement III is also incorrect because Tax Structure #2 is not progressive.

Indicate Which of the Following Statements Concerning the Following Tax