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

question 34

Multiple Choice

Consider a system in which a person earning $10,000 pays $1,000 in taxes,a person earning $25,000 pays $2,000,and someone earning $60,000 pays $4,000.This is an example of:

• A)progressive taxation.
• B)proportional taxation.
• C)regressive taxation.
• D)a property tax.
• E)a tax based on the benefits-principle of taxation.

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Definitions:

Phosphorus

A chemical element (P) that is essential for the formation of DNA, RNA, and ATP, playing a critical role in energy storage and transfer within cells.

Nitrification

A microbial process by which ammonia is converted into nitrate, an important step in the nitrogen cycle.

Ammonium

A positively charged ion (NH4+) formed by the addition of a hydrogen ion to ammonia (NH3).

Nitrates

Salts or esters of nitric acid, containing the NO3- ion, commonly used in fertilizers.