Question


Which of the following would be a progressive tax?


Everyone pays a 5 percent sales tax.


People earning $35,000 pay 10 percent tax, while people earning $100,000 pay 30 percent tax.


People pay 10 percent tax on property, whether it is worth $50,000, $500,000, or $50 million.


All people pay a 15 percent income tax.

Answers

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Answered by GPT-4o mini
A progressive tax is one where the tax rate increases as the taxable amount (such as income) increases, meaning that those with higher incomes pay a higher percentage of their income in taxes.

Based on the options provided, the correct answer is:

**People earning $35,000 pay 10 percent tax, while people earning $100,000 pay 30 percent tax.**

In this scenario, higher-income earners (those making $100,000) are taxed at a higher rate (30%) compared to lower-income earners (those making $35,000, who pay 10%). This structure exemplifies a progressive tax system.