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

a progressive tax
a progressive tax

a regressive tax
a regressive tax

an estate tax
an estate tax

an excise tax

Answer 1

This is an example of **a progressive tax**. In a progressive tax system, individuals with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. In this case, those making $250,000 are experiencing an even greater increase in their tax rate compared to those making $100,000.