Suppose a government of LaLa Land imposes the following tax rates on its citizens.

The government has imposed a ________ tax system because its citizens will pay a ________ portion of their income as taxes as incomes increase.

Question

Suppose a government of LaLa Land imposes the following tax rates on its citizens.

The government has imposed a ________ tax system because its citizens will pay a ________ portion of their income as taxes as incomes increase.

Quizplus · Accepted Answer

A progressive tax system means that the tax rate increases as the income increases, so those with higher incomes will pay a larger percentage of their income in taxes. The given tax rates show that as the income increases, the tax rate also increases. Therefore, the tax system in LaLa Land is progressive. Additionally, the question states that citizens will pay a larger portion of their income as taxes as incomes increase, which also supports the answer of A for progressive tax system.

Suppose a Government of LaLa Land Imposes the Following Tax