If Mike earns $80,000 this year and pays $16,000 in taxes and David earns $50,000 this year and pays $11,000 in taxes, this tax system would appear to be

Question

Quizplus · Accepted Answer

As the income increases, the tax amount does not increase proportionally. In this case, David is paying a higher percentage of his income as taxes compared to Mike. Hence, the tax system appears to be regressive.

If Mike Earns $80,000 This Year and Pays $16,000 in Taxes