Question 1
A family that earns $20,000 a year pays $200 a year in city wage taxes. A family that earns $40,000 a year pays $1,600 a year in city wage taxes. The city wage tax is
◦ a progressive tax.
◦ a regressive tax.
◦ a proportional tax.
◦ a benefits-received tax.
Question 2
A comprehensive tax of 15% on all forms of income with no deductions or exclusions is an example of a
◦ proportional tax.
◦ progressive tax.
◦ regressive tax.
◦ rate tax.