Question

Look at the graph. What kind of tax does the first half (lowest 20 percent to fourth 20 percent) of the graph illustrate?

Answer 1

Answer:

By observing the graph, it can be said that the first half of the graph illustrates a progressive tax.

Explanation:

• The tax in the first half of the graph ranges from the lowest 20% to the fourth 20%.
• In this range, it can be seen that for every income group, the total effective tax rate has increased considerably at every new stage.
• The tax rate has increased by approximately 3 to 4 percent every time.