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