Andrew most likely replied with "Progressive." A progressive tax system is one where the tax rate increases as the taxable income increases, meaning higher-income earners pay a larger percentage of their income in taxes compared to lower-income earners, which effectively redistributes income.
Andrew, a senior accountant, was holding a meeting with other accountants in his firm. The junior accountants asked what tax system in a market economy redistributes income by taxing low-income and high-income earners at different rates. Which tax system did Andrew MOST likely reply?
(1 point)
Responses
Equitable
Equitable
Regressive
Regressive
Self-employment
Self-employment
Progressive
Progressive
1 answer