Table 12-21
The dollar amounts in the last three columns are the taxes owed under the three different tax systems.
-Refer to Table 12-21. Which of the three tax systems is regressive?
A)Tax System A
B)Tax System B
C)Tax System C
D)None of the systems are regressive.

Question

Table 12-21
The dollar amounts in the last three columns are the taxes owed under the three different tax systems. 
-Refer to Table 12-21. Which of the three tax systems is regressive?
A)Tax System A 
B)Tax System B 
C)Tax System C 
D)None of the systems are regressive.

Quizplus · Accepted Answer

Tax System B is regressive because the percentage of income paid in taxes decreases as income increases. For example, someone who earns $20,000 pays 10% in taxes ($2,000), while someone who earns $200,000 pays only 5% in taxes ($10,000). This means that the tax burden falls more heavily on lower-income individuals.

Table 12-21 the Dollar Amounts in the Last Three Columns Are the Are