A Country Redesigned Its Tax Policy So That the Amount

question 2

Multiple Choice

A country redesigned its tax policy so that the amount of taxes an individual paid was based on his or her earnings, with those earning more paying more in taxes. For example, an individual who makes $20,000 a year pays 3 percent in taxes, while an individual who makes $100,000 a year pays 3 percent on the first $20,000 and an additional 10 percent on the remaining $80,000. This is called

• A) liberal taxation.
• B) regressive taxation.
• C) conservative taxation.
• D) progressive taxation.