The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2

-Which of the following tax structures creates a disincentive to earn more?

Question

The table given below shows the absolute tax amounts under five different tax policies for respective income levels.Table 19.2
 
-Which of the following tax structures creates a disincentive to earn more?

Quizplus · Accepted Answer

A progressive tax structure creates a disincentive to earn more because as income rises, the tax rate also increases, resulting in a larger portion of income going towards taxes. This can create a situation where individuals may not see as much benefit from earning more income due to the higher tax burden.

The Table Given Below Shows the Absolute Tax Amounts Under