Question
A new tax is proposed that requires those making $100, 000 a year pay 15% more of their income in taxes and those making $250, 000 a year pay 25% more of their income in taxes. This is an example of (1 point)
Responses
an estate tax
an estate tax
a regressive tax
a regressive tax
a progressive tax
a progressive tax
an excise tax
Responses
an estate tax
an estate tax
a regressive tax
a regressive tax
a progressive tax
a progressive tax
an excise tax
Answers
GPT-4o mini
This is an example of **a progressive tax**. Progressive taxes are designed so that individuals with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. In this case, those making $100,000 pay a 15% increase in their tax, while those making $250,000 pay a 25% increase, indicating that higher earners are subject to a larger percentage increase in their tax burden.