Identify the correct and incorrect statements about taxation. Correct Answer(s) Drag appropriate answer(s) here The federal tax rate is progressive, increasing as individuals' and families' income increases. Those in the bottom 20 percent of income earners typically pay a higher rate in state and local taxes compared to federal income taxes. The middle income earners (i.e., middle 20%) pay the most in federal taxes. State and local tax rates increase as individuals' and families' income increases