What is a defining characteristic of a regressive tax system?
a. The tax rate increases as income decreases.
b. The burden is equal for the poor and the wealthy.
c. The funds are typically used only during emergencies.
d. The sales tax does not apply to all purchases.
Question 2
In a progressive tax system which of the following is true?
a. The tax rate increases as income increases.
b. A higher burden is placed on the poor than on the wealthy.
c. The funds are typically used only during emergencies.
d. The collected tax is typically set aside for the Rainy Day Fund.
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