If Stephen earns $100,000 this year and pays $20,000 in taxes and Chris earns $50,000 this year and pays $5,000 in taxes, this tax system would appear to be
A)progressive.
B)proportional.
C)regressive.
D)none of the above

Question

If Stephen earns $100,000 this year and pays $20,000 in taxes and Chris earns $50,000 this year and pays $5,000 in taxes, this tax system would appear to be
A)​progressive.
B)​proportional.
C)​regressive.
D)​none of the above

Quizplus · Accepted Answer

This tax system is progressive because the higher income earner, Stephen, pays a higher percentage of his income in taxes (20%) compared to Chris, who pays a lower percentage (10%). In a progressive tax system, the tax rate increases as the taxable amount increases.

If Stephen Earns $100,000 This Year and Pays $20,000 in Taxes