A family's income tax liability is
A)a standard percentage of all income earned.
B)determined by wage income rather than dividend and interest income.
C)based on total income.
D)constant from year to year.

Question

Quizplus · Accepted Answer

A family's income tax liability is based on their total income, which includes wages, dividends, interest, and any other sources of income. The tax system is progressive, which means that as income increases, the percentage of income that is taxed also increases. Therefore, the tax liability is not a standard percentage of all income earned and is not constant from year to year.

A Family's Income Tax Liability Is