The Idea Behind a Progressive Tax System Is That It

question 50

Multiple Choice

The idea behind a progressive tax system is that it is fair that

• A)taxpayers with higher incomes pay smaller shares of their incomes in taxes.
• B)taxpayers with higher incomes pay higher taxes.
• C)taxpayers with higher incomes pay greater shares of their incomes in taxes than those with lower incomes.
• D)taxpayers with higher incomes pay the same shares of their incomes in taxes as those with lower incomes.

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Definitions:

Overconfidence

The tendency to be more confident in one's own abilities or outcomes than is objectively justified.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person’s mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut used in decision-making that involves judging the likelihood of an event based on how closely it matches a prototype or stereotype.

Belief Perseverance

The phenomenon where individuals stick to their initial beliefs even when confronted with contrasting evidence.