How is the federal income tax a progressive tax?

A.
Two married people who file their taxes together will pay more taxes than a single person will.

B.
A person with a higher income pays more money in taxes, although the percentage he or she pays as tax is less.

C.
Children pay no taxes, regardless of whether they earn a large income.

D.
The higher the income a person has, the higher the percentage that person pays in tax.

1 answer

The correct answer is:

D. The higher the income a person has, the higher the percentage that person pays in tax.

A progressive tax system is designed so that individuals with higher incomes pay a higher percentage of their income in taxes compared to those with lower incomes. This structure aims to reduce income inequality and provide greater revenue for government services and programs.