The table below describes three tax systems (A, B, and C) for three income levels. Tax system A Tax system B Tax system C Income Amount of Tax Percent of Income Amount of Tax Percet of Income Amount of Tax Percent of Income 20,000 $ 50,000 100,000 S 30,000 2,000 24 3,000 5,000 15% 15% 15% $ 15,000 10,000 a. Fill in the blanks in the table and, for each tax system, explain whether it is progressive, regressive or proportional. b. Which of these three tax systems can be considered as equitable?
The table below describes three tax systems (A, B, and C) for three income levels. Tax system A Tax system B Tax system C Income Amount of Tax Percent of Income Amount of Tax Percet of Income Amount of Tax Percent of Income 20,000 $ 50,000 100,000 S 30,000 2,000 24 3,000 5,000 15% 15% 15% $ 15,000 10,000 a. Fill in the blanks in the table and, for each tax system, explain whether it is progressive, regressive or proportional. b. Which of these three tax systems can be considered as equitable?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter16: Government Spends, Collects, And Owes
Section: Chapter Questions
Problem 22AA
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