Suppose an Income Tax Is Levied in the Following Way

question 38

Multiple Choice

Suppose an income tax is levied in the following way: All individuals pay 10% of their income up to an income of $30 000.On all income above $30 000,individuals pay 20% of their income.Such a tax is

• A)regressive.
• B)progressive.
• C)indexed.
• D)proportional.
• E)unrealistic.

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Definitions:

Joint Ventures

A partnership where multiple parties combine their assets to achieve a particular goal.

Entity

A legal or business entity that is capable of incurring liabilities and undertaking activities, often used to describe businesses, organizations, or corporations.

Shared Control

A situation where control over an economic activity is shared among two or more parties, typically in a joint venture or partnership.

Joint Control

A contractual arrangement shared by two or more parties, under which no single party has unilateral control over the strategic financial and operating decisions of the venture.