Assume that a family making $20,000 pays $1,500 in taxes while a family making $40,000 pays $3,500 in taxes.Over this income range,the tax rate system is

Question

Quizplus · Accepted Answer

A progressive tax rate system is one where the tax rate increases as income increases. In this scenario, the family making $40,000 pays a higher percentage of their income in taxes than the family making $20,000, indicating a progressive tax rate system. A proportional tax rate system would result in both families paying the same percentage of their income in taxes, while a regressive tax rate system would result in the family making $20,000 paying a higher percentage of their income in taxes. Therefore, the best choice is C, progressive.

Assume That a Family Making $20,000 Pays $1,500 in Taxes