Consider an Income-Tax System That Requires All Individuals to Pay

question 101

Multiple Choice

Consider an income-tax system that requires all individuals to pay exactly 3% of their income.This income-tax system is

• A)proportional.
• B)progressive,because the higher the individual's income,the greater the amount of tax paid.
• C)regressive,since 3% is harder to pay for a low-income taxpayer.
• D)fair,since everyone pays the same amount.
• E)a lump-sum system,sometimes called a poll tax.

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Definitions:

Unit Sales

The quantity of items or products sold, not taking into account the revenue generated from these sales.

Price Hike

An increase in the listed price of goods or services, often due to increased costs or higher demand.

Sales Forecast

An estimate of the amount of products or services a company expects to sell in a future period, which is crucial for budgeting and planning purposes.

Net Operating Income

The profit a company makes from its regular business operations, excluding expenses and revenue from non-operational activities.