Which kind of person would pay a higher rate with a progressive tax?A.A person with a low incomeB.A person with few dependentsC.A person with many dependentsD.A person with a high income
Question
Which kind of person would pay a higher rate with a progressive tax?A.A person with a low incomeB.A person with few dependentsC.A person with many dependentsD.A person with a high income
Solution
D. A person with a high income
Explanation: A progressive tax is a tax that takes a larger percentage from the income of high-income earners than it does from low-income individuals. Basically, taxpayers are broken down into categories based on taxable income; the more one earns, the more taxes they will have to pay once they cross the benchmark cut-off points between the different tax bracket levels in a progressive tax system. Therefore, a person with a high income would pay a higher rate with a progressive tax.
Similar Questions
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