Which of the Following Would Indicate That a Tax Is

question 99

Multiple Choice

Which of the following would indicate that a tax is regressive?

• A)High-income people pay $5, 000; low-income people pay $2, 000.
• B)High-income and low-income people pay $200 each.
• C)High-income people pay 20 percent of their income in taxes; low-income people pay 10 percent.
• D)Both high-income and low-income people pay 10 percent of their income in taxes.
• E)Low-income people are exempt from the tax.

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Definitions:

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

S Corporation

A special type of corporation in the United States that meets specific Internal Revenue Code requirements, allowing profits to be passed on to shareholders and taxed at individual rates.

Limited Liability Company

An entity configuration that fuses the single-tier tax system seen in a sole proprietorship or partnership with the corporation’s attribute of shielding personal assets from business liabilities.

Limited Partnership

A business structure where at least one partner is liable only to the extent of their investment in the company, while at least one other partner has unlimited liability.