Subira earns $125,000 a year and pays $20,000 in a certain tax. Qamar earns $75,000 a year and pays $15,000 in the same tax. We can conclude that this is a _____ tax.
A) flat
B) lump-sum
C) progressive
D) regressive

Question

Quizplus · Accepted Answer

The tax is regressive because the higher earner (Subira) pays a smaller percentage of their income in tax compared to the lower earner (Qamar), indicating the tax burden decreases as income increases.

Subira Earns $125,000 a Year and Pays $20,000 in a Certain