If Luis Makes $50,000 Per Year as a Computer Programmer

question 94

Multiple Choice

If Luis makes $50,000 per year as a computer programmer and pays $6,000 in taxes while Hector makes $50,000 per year as a roofing contractor and pays $7,000 in taxes,this is an example of

• A)A regressive tax system.
• B)Horizontal inequity.
• C)A flat tax.

---

Definitions:

Risk of Loss

The potential for an asset to decrease in value or for a financial loss to occur in a transaction.

Reimbursed

Repaid or compensated for expenses or losses incurred.

Contract

An agreement legally recognized and enforceable, made between two or more parties.

Specific Language

Precise and clear language that explicitly states or describes something without ambiguity.