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icang [17]
3 years ago
5

In the United States, people are sorted into different tax brackets so that they pay differing amounts of taxes based on their i

ncome level. Which type of tax system does this BEST demonstrate?
A. regressive
B. progressive
C. proportional
D. flat
Business
1 answer:
jarptica [38.1K]3 years ago
3 0

Answer:

B. progressive

Explanation:

In a progressive tax system, the tax rate imposed on individuals and firms is based on their income levels.  A low tax rate is applied to low-income earners. As income levels increases, the tax rate also increases. This means that the poor are taxed using lower tax rates compared to the wealthy.

A progressive tax system promotes equity and fair distribution of wealth. The poor have little; hence pay low taxes while the rich pay higher amounts.

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