katie had a before-tax income of $40,000 and paid taxes of $6,000. Ramesh had a before...

katie had a before-tax income of $40,000 and paid taxes of $6,000. Ramesh had a before tax income of $35,000 and paid taxes of $5,250. Based on this information, the tax system is .....

a.regressive for all income levels below $40,000

b. proportional

c. progressive

d. based on the benefits-received principle

e. regressive for income levels between $35,000 and $40,000

Solutions

Expert Solution

As Katie has a higher income and she is paying a higher tax than Ramesh, i.e. as the income is increasing the tx is increasing we can say that the tax is progressive.

The answer is "C".

Rahul Sunny answered 1 year ago

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