Question 17
Public FinanceThe table below shows the percentage paid as tax on different income levels. Use it to answer the question.
Tax System | $100 | $500 | $1000
Q | 10% | 10% | 10%
T | 90% | 70% | 30%
S | 20% | 65% | 40%
R | 10% | 40% | 70%
Which tax system is progressive? Tax system
- A.T.
- B.Q.
- C.R.
- D.S.
Show the answer and explanation
Answer: C (R.)
Explanation
In R the rate rises with income (10%, 40%, 70%).