Suppose that the government collected taxes in the following fashion: people who earn less than $50,000 pay 25 percent in taxes, people who earn between $50,000 and $100,000 pay 35 percent in taxes, people who earn between $100,000 and $200,000 pay 30 percent in taxes, and people who earn more than $200,000 pay 28 percent in taxes. Which of the following statements is correct?
a. The tax system is proportional for income levels less than $50,000 and regressive for income levels above $50,000.
b. The tax system is regressive for income levels less than $100,000 and progressive for income levels above $100,000.
c. The tax system is progressive for income levels less than $100,000 and regressive for income levels above $100,000.
d. The tax system is progressive for income levels less than $50,000 and proportional for income levels above $100,000.
c
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The fact that the firms in an oligopoly are mutually interdependent means that each firm:
A) must consider the reactions of its competitors when it sets the price for its output. B) produces a product that is similar, but not identical, to the products of its competitors. C) produces a product that is identical to the products of its competitors. D) faces a perfectly elastic demand curve for its product.
Increase in consumer confidence will ________ the expenditure curve:
A) decrease. B) increase. C) down. D) none of the above.
A government policy that lets individuals put away money for retirement tax-free will
A) shift the demand curve for loanable funds rightward. B) crowd out private investment. C) shift the supply curve of loanable funds to the right. D) induce people to save less at any interest rate.
The study of factors that contribute to the economic growth of a country is known as
A. political economics. B. entrepreneurial economics. C. natural resource economics. D. development economics.