Which of the Following Examples Illustrates a Progressive Income Tax

question 124

Multiple Choice

Which of the following examples illustrates a progressive income tax?

• A) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes.
• B) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $50 in taxes.
• C) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $80 in taxes.
• D) I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.

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Definitions:

Outstanding Checks

Checks written by a company or person that were not received or not processed by the bank before the preparation of the bank statement.

Financial Statement

A formal record of the financial activities of a business, person, or other entity, presented in a structured manner to understand financial conditions and operations.

Normal Balance

The side of an account (debit or credit) where increases are recorded, depending on the account type.

Permanent/Temporary

Refers to the duration of an object, situation, or condition, where "permanent" is enduring or lasting forever, and "temporary" is limited in time.