Suppose the first $20,000 of income is nontaxable and the tax rate on all additional income is 25 percent.This tax rate system is

Question

Quizplus · Accepted Answer

This tax rate system is progressive because the effective tax rate increases as income increases. The first $20,000 is not taxed, and only the income above this threshold is taxed at 25%, meaning higher-income individuals will pay a higher percentage of their income in taxes compared to lower-income individuals.

Suppose the First $20,000 of Income Is Nontaxable and the Tax