Taxpayer a Pays Tax of $3,300 on Taxable Income of $10,000

question 12

Multiple Choice

Taxpayer A pays tax of $3,300 on taxable income of $10,000 while taxpayer B pays tax of $6,600 on $20,000. The tax is a

• A)proportional tax.
• B)regressive tax.
• C)progressive tax.
• D)horizontal tax.

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Definitions:

Critical Thinking

The active process of analyzing, synthesizing, and evaluating information to reach an informed conclusion.

Unfortunate Accidents

Refers to unexpected and undesirable events that happen by chance and result in harm or loss.

Important

Having significant value, meaning, or influence on a situation, decision, or outcome.

Holistic Critical Thinking

An approach to critical thinking that considers the complete situation, context, or whole, rather than just its parts.