Assume a family that earns $20,000 pays $1,500 in income taxes, while a family that earns $40,000 pays $3,200 in income taxes. In this situation, the income tax system is

Question

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The tax system is progressive because the percentage of income taxed increases as income increases. The family earning $40,000 pays a higher percentage of their income in taxes compared to the family earning $20,000.

Assume a Family That Earns $20,000 Pays $1,500 in Income