Question

The federal personal income tax is an example of what kind of tax?

Answer 1

The federal personal income tax is an example of a progressive tax.

Explanation:

• A progressive tax is defined as the taxable amount increases when the tax rate increases. The term progressive is known as the increase from low to high.
• A person's marginal tax is high when compared to the taxpayer's average tax rate.This progressive tax will tend the people who have a lower ability to pay will pay less and who are the higher ability of pay will pay high.
• To know that clearly, it is the personal income tax. People with lower income will pay less tax and people with higher income will pay high taxes
• Britain Prime Minister William Pitt the Younger was introduced the first modern income tax.