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If Jim Earns $300,000 a Year and Pays $75,000 in Taxes

Question 25

Multiple Choice

If Jim earns $300,000 a year and pays $75,000 in taxes and Sharon earns $80,000 a year and pays $20,000 in taxes, this tax system would be an example of:


A) progressive taxation
B) proportional taxation
C) regressive taxation
D) Marshallian taxation
E) Pigouvian taxation

Correct Answer:

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