Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The answer is The rate at which taxes are paid should be the same for all income levels. Why is this the answer? PROGRESSIVE TAXATION

The answer is "The rate at which taxes are paid should be the same for all income levels." Why is this the answer?

image text in transcribed
PROGRESSIVE TAXATION INCOME $25,000 INCOME $75,000 INCOME $100,000 TAX RATE 30% $25,000 $7,500 LAK RACE 25% FAX RATE 25% $12,500 $12.500 $50,000 $50,000 O TAX RATE 15%% TAXRATE 15%% TAX RATE 15% $3,750 $3,750 $25,000 $3,750 $25,000 $25.000 TOTAL TAXES $3,750 TOTAL TAXES $16,250 TOTAL TAKES $23,750 What principle of equity is illustrated by this diagram? O The people who receive the benefits of the tax should be the ones paying the tax. O The rate at which taxes are paid should be the same for all income levels. The share of income paid in taxes should vary based on ability to pay. The government should reduce tax rates when it is receiving ample revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Climate Policy And Nonrenewable Resources The Green Paradox And Beyond

Authors: Karen Vollebergh, Rick Van Der Ploeg

1st Edition

0262319845, 9780262319843

More Books

Students also viewed these Economics questions