Suppose that in the economy of Springfield, USA, Homer, who has an income of $50,000, pays $10,000 in taxes. Edna, who has an income of $35,000, pays $9,000 in taxes. Based on this information, we could say that Springfield's tax system is

Question

Quizplus · Accepted Answer

A regressive tax system is one where the tax rate decreases as the income level increases. In this case, Homer, with a higher income, pays a lower percentage of his income in taxes (20%) compared to Edna, who pays a higher percentage (approximately 25.7%).

Suppose That in the Economy of Springfield, USA, Homer, Who