Exhibit 12-3 Income for two persons
NameIncome
Meredith$124,000
Hillary$ 45,000
In Exhibit 12-3, if the income tax system is currently proportional, we know that:
A. Meredith would probably prefer a progressive income tax system while Hillary would probably prefer a regressive income tax system.
B. Meredith and Hillary would both probably prefer a regressive income tax system.
C. Meredith and Hillary would both probably prefer a progressive income tax system.
D. Meredith would probably prefer a regressive income tax system while Hillary would probably prefer a progressive income tax system.
Answer: D
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