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

Tax Structure #1 is proportional because the tax rate remains constant as income increases. Tax Structure #1 is not regressive because a regressive tax system would result in a higher tax burden for individuals with lower incomes, which is not the case for Tax Structure #1. Tax Structure #2 is progressive because the tax rate increases as income increases. Tax Structure #3 is also progressive because the tax rate increases as income increases.

Indicate Which of the Following Statements Concerning the Following Tax