Evaluate the following statement: A progressive tax system means that a taxpayer will pay a higher tax rate for a given dollar of earnings for every successive year.

Question

Quizplus · Accepted Answer

A progressive tax system means that as a taxpayer's income increases, they will pay a higher percentage of their income in taxes. However, it does not mean that a taxpayer will pay a higher tax rate for a given dollar of earnings for every successive year. The tax rate for a particular income level may remain the same or increase by a smaller percentage than the increase in income.

Evaluate the Following Statement: a Progressive Tax System Means That