Taxation that allows higher-income people to pay less of their income on taxes than lower-income people is called:A.regressive taxation.B.proportional taxation.C.progressive taxation.D.indirect taxation.
Question
Taxation that allows higher-income people to pay less of their income on taxes than lower-income people is called:A.regressive taxation.B.proportional taxation.C.progressive taxation.D.indirect taxation.
Solution
The correct answer is A. regressive taxation. This type of taxation takes a larger percentage of income from low-income earners than from high-income earners. It is the opposite of progressive taxation, which takes a larger percentage from high-income earners.
Similar Questions
Which of the following best describes a progressive tax system?*1 pointAll taxpayers pay the same percentage of their income as taxHigh-income earners pay a smaller percentage of their income than low-income earnersHigh-income earners pay a larger percentage of their income than low-income earnersThe tax rate decreases as the taxpayer's income increases
16 What describes a regressive tax?1 pointA It is paid by a higher proportion of high income earners.B It is paid by a higher proportion of low income earners.C It takes a higher proportion from high incomes.D It takes a higher proportion from low incomes.
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
Income tax is a type of _____ tax.A.regressiveB.progressiveC.digressiveD.permissiveSUBMITarrow_backPREVIOUS
How does a progressive taxation system work?A.It makes all citizens pay the same percentage of their income in taxes.B.It makes less wealthy citizens pay a higher percentage of their income in taxes.C.It makes wealthier citizens pay a higher percentage of their income in taxes.D.It requires all citizens to pay all of their income in taxes for redistribution.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.