Jake earned $15,000 and paid $1,500 of income tax,while Jill earned $40,000 and paid $6,000 of income tax.The tax rate structure they are subject to is:

Question

Quizplus · Accepted Answer

A progressive tax structure means that as an individual's income increases, the percentage of tax they pay also increases. In the given scenario, Jake's income is lower than Jill's, and hence he pays a lower amount of tax. This indicates a progressive tax structure where the tax rate increases with the increase in income. Therefore, option A) Progressive is the correct choice.

Jake Earned $15,000 and Paid $1,500 of Income Tax,while Jill