Family A earns 20,000 a year, Family B earns 40,000, and Family C earns 100,000. Which of the following tax systems can most accurately be described as progressive?
a) Family A pays 5 percent of earnings in tax, Family B pays 8 percent, and Family C pays 12 percent.
b) All three families pay 10 percent of their earnings in taxes.
c) Family A pays 10 percent of earnings in taxes, Family B pays 7 percent, and Family C pays 4 percent.
d) Family A pays 10 percent of earnings in taxes, Family B pays 8 percent, and Family C pays 12 percent.
e) Allowing each family to decide the appropriate tax rate for their situation.
Question 2
The tax structure in Texas is said to be which of the following?
a) progressive
b) proportional
c) marginal
d) regressive
e) equitable
gene family
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