As a taxpayer's income rises, the amount of income tax paid falls under the regressive tax system but rises under the progressive tax system.

Question

Quizplus · Accepted Answer

As income rises, the amount of income tax paid also rises under a progressive tax system, as tax rates increase progressively with income. A regressive tax system, on the other hand, means that as income rises, the percentage of income paid in taxes decreases, which can result in lower overall tax payments for higher earners.

As a Taxpayer's Income Rises, the Amount of Income Tax