Which of the following would indicate that an income tax is progressive?
a. high-income people pay 3,000 . low-income people pay 1,000
b. low-income people pay 3,000 . high-income people pay 1,000
c. high-income and low-income people all pay 1000 each
d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent
e. both high-income and low-income people pay 10 percent of their income in taxes
Question 2
In the following situation the tax system is Taxable income 5,000 10,000 20,000 Tax payments 500 600 1,600
a. progressive
b. proportional
c. regressive
d. based on the benefits received
e. there is insufficient information to answer the question
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