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 income increases. Therefore, statement I is correct. Tax Structure #1 cannot be proportional because it does not have a constant tax rate regardless of income. Tax Structure #2 is progressive because the tax rate increases as income increases. Therefore, statement III is correct. Tax Structure #3 is also progressive because the tax rate increases as income increases. Therefore, statement IV is correct. Overall, statements I and IV are correct, making choice C the best answer. Statements II and III are not correct.

Indicate Which of the Following Statements Concerning the Following Tax