Under a Particular Tax System, the Government Collects $40 Billion

question 40

Essay

Under a particular tax system, the government collects $40 billion in tax revenues when GDP is $800 billion and $45 billion when GDP is $900 billion.Is this tax system regressive, proportional, or progressive?

---

Definitions:

New Deal Policies

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.

Bankers

are individuals or entities engaged in the business of dealing with money, lending, exchanging, and safeguarding funds.

Inflation

The rate at which the general level of prices for goods and services rises, eroding purchasing power over time.

Securities Act of 1933

is a U.S. law enacted to protect investors by requiring transparency in the financial statements of publicly traded companies.