The Table Above Shows Three Taxpayers,their Incomes,and Taxes Owed

question 109

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \text { Tax Payer } & \text { Income } & \text { Income Taxes Owed } \\\hline \text { Angela } & \$ 10,000 & \$ 1,000 \\\hline \text { Bob } & \$ 100,000 & \$ 10,000 \\\hline \text { Carmen } & \$ 1,000,000 & \$ 100,000 \\\hline\end{array}$$
The table above shows three taxpayers,their incomes,and taxes owed.The data reflect a ________ income tax system because people pay ________.

• A) regressive; a larger portion of their income as taxes
• B) progressive; a smaller portion of their income as taxes
• C) proportional; the same proportion of their income as taxes regardless of their level of income.
• D) flat rate; the same amount of taxes regardless of their income
• E) negative; a smaller portion of their income as taxes

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Definitions:

Writing Requirement

A legal criterion under certain statutes, such as the Statute of Frauds, that mandates certain contracts must be in written form to be legally enforceable.

Promissory Note

A written promise to pay a specified sum of money to a designated person or entity, at a determinable future time or on demand.

Revolving Line of Credit

A credit arrangement that allows a borrower to use, repay, and re-borrow funds up to a specified credit limit.

Intergovernmental Organization

An entity created by treaty, involving two or more nations, to work on issues of common interest or cooperation.