Katie Had a Before-Tax Income of $40,000 and Paid Taxes

question 83

Multiple Choice

Katie had a before-tax income of $40,000 and paid taxes of $6,000. Ramesh had a before-tax income of $35,000 and paid taxes of $5,250. Based on this information, the tax system is _____

• A) regressive for all income levels below $40,000.
• B) proportional.
• C) progressive.
• D) based on the benefits-received principle.
• E) regressive for income levels between $35,000 and $40,000.

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Definitions:

Suffix

An affix placed after the stem of a word to modify its meaning or create a new word, often indicating a part of speech.

Vowel

A letter of the alphabet representing a speech sound made without significant constriction of the flow of air from the lungs.

Combining Forms

Parts of words (often derived from Greek or Latin) that carry specific meanings and are used in the construction of medical and scientific terminology.

Suffix

A linguistic element added to the end of a word to form a derivative or change its grammatical function.