Since 1970, the Share of Income in the

question 158

Multiple Choice

Since 1970, the share of income in the

• A)lowest quintile has increased and the share in highest has decreased.
• B)lowest quintile has decreased and the share in highest has increased.
• C)lowest quintile has increased and the share in highest has increased.
• D)lowest quintile has decreased and the share in highest has decreased.

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Definitions:

Tax Liability

The total amount of tax owed by an individual or business entity to taxing authorities like the IRS after accounting for deductions, credits, and exemptions.

Tax Rate Structure

The system of varying tax rates that apply to different levels of income, used by governments to calculate tax liability.

Regressive

pertains to a tax system where the tax rate decreases as the taxable amount increases, meaning lower-income individuals pay a higher percentage of their income compared to higher-income individuals.

Circular 230

Regulations promulgated by the United States Treasury Department governing practice before the Internal Revenue Service by attorneys, certified public accountants, and other professionals.