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:

Debit Postings

Entries made on the left side of a ledger account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Account Balance

An account balance refers to the amount of money held in a financial repository, typically a bank account, at any given moment.

Painting Equipment

Assets used in the operation of a painting business or for painting activities, classified as long-term if they provide benefits over multiple periods.

Accounts Payable

The balance of money owed to suppliers for goods or services purchased on credit and not yet paid.