Consider a System in Which a Person Earning $10,000 Pays

question 153

Multiple Choice

Consider a system in which a person earning $10,000 pays $1,000 in taxes,a person earning $25,000 pays $1,000 in taxes,and a person earning $60,000 pays $1,000 in taxes.What type of tax is this?

• A)Regressive
• B)Proportional
• C)Progressive
• D)A tax based on the ability-to-pay principle
• E)A tax impossible to determine with the information provided

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Definitions:

Tacit Knowledge

Knowledge that is learned from experience and, once known, often occurs without conscious thought.

Investigating

The process of systematically examining or researching to uncover facts and information.

Data Warehousing

The process of collecting, storing, and managing large volumes of data from various sources in a central repository, enabling efficient analysis, reporting, and data querying.

Statistical Manipulation

The practice of altering or presenting data in a way that misleads or deceives the audience, often to support a particular conclusion or viewpoint.