If Joe earns $80, 000 per year and pays $20, 000 in taxes, while Moe earns $100, 000 and pays $22, 000 in taxes, their tax system would best be described as:

Question

Quizplus · Accepted Answer

A progressive tax system is one in which the tax rate increases as the taxable income increases. In this case, Joe earns less than Moe but pays a lower percentage of his income in taxes. This means that the tax system is progressive.

If Joe Earns $80, 000 Per Year and Pays $20