Practice Quiz

Praxis II Citizenship

Category - Economics

Start a Study Session Sign up for Question of the Day
John makes $25,000 a year and has a 10 percent income tax. Thomas makes $100,000 a year and has a 40 percent income tax. James makes $200,000 a year and has an 80 percent income tax. What kind of income tax does their country have?
  1. Progressive tax
  2. Regressive tax
  3. Flat tax
  4. Dual-rate tax
Explanation
Answer: A - John, Thomas and James pay a progressive income tax. A progressive income tax assigns taxpayers to tax brackets based on each payer’s taxable income. The lower a payer’s taxable income, the lower his or her tax rate will be. A progressive tax collects higher taxes from the people who earn more money overall. The income tax in the United States is considered progressive. In 2012, the U.S. had six tax brackets, which ranged from 10 percent to 35 percent.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz