A Progressive Income Tax Means That Those with a Higher

question 60

Multiple Choice

A progressive income tax means that those with a higher income pay

• A) a lower percentage of their income in taxes than low-income people.
• B) a higher percentage of their income in taxes than low-income people.
• C) the same percentage of their income in taxes as low-income people.
• D) all the taxes in the economy.

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Definitions:

Equal Opportunities

The principle that all individuals should have the same opportunities to advance socially and economically, without facing discrimination or bias.

Negative Income Tax

A taxation framework where individuals earning under a specified threshold get additional compensation from the government rather than contributing tax.

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, designed to encourage and reward work.

Negative Income Tax

A tax system where people earning below a certain amount receive supplemental pay from the government instead of paying taxes.