The Figure Below Show a Simplified Version of the Current

question 65

Multiple Choice

The figure below show a simplified version of the current (2015) Canadian federal income-tax system.The marginal income-tax rates for the four ranges of income are 15%,22%,26%,and 29%,respectively. FIGURE 18-2
-Refer to Figure 18-2.What needs to be true about the four marginal income-tax rates in order for this tax system to be considered regressive?

• A)they need to be smaller than they are now
• B)they need to be larger than they are now
• C)they need to be constant
• D)they need to decrease as income increases
• E)they need to increase as income increases

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Definitions:

Inflation

The rate at which the comprehensive cost of goods and services inflates, sapping the buying power.

Total Percentage Return

The total return on an investment, including both capital gains and dividends, expressed as a percentage of the initial investment.

Dividends

Distributions of earnings from a corporation to its owners, sharing a part of the company's income.

Shares

Equity shares in a corporation or financial asset, offering stakeholders a balanced share in the declared profits through dividends.