### Tax Chart AnalysisThis table provides a comparison of tax payments based on different income levels for three families: A, B, and C.#### Table Data- **Family A:** - **Income:** $10,000 - **Percent of Income Paid in Tax:** 10% - **Total Amount of Tax Paid:** $1,000- **Family B:** - **Income:** $50,000 - **Percent of Income Paid in Tax:** 20% - **Total Amount of Tax Paid:** $10,000- **Family C:** - **Income:** $100,000 - **Percent of Income Paid in Tax:** 30% - **Total Amount of Tax Paid:** $30,000#### Tax Structure EvaluationThe task is to identify the type of tax structure depicted in the chart based on the following options:- **Proportional Tax**- **Progressive Tax**- **Regressive Tax**The values show an increasing percentage of income paid as tax with higher income, indicating a **Progressive Tax** system. This is where the tax rate increases as the taxable amount increases.

Proportional Tax is the tax which is levied as the same percentage on each individual despite of the amount of income earned. Progressive Tax is the tax which varies with the income of the consumer i.e. higher the income higher the tax rate and lower the income, lower the tax rate. Regressive Tax is the tax which decreases with the increase in income. In the given situation, the income of the three families increases. Family A has a income of $10000 with the tax rate of 10% Family B has a income of $50000 with the tax rate of 20%. Family C has a income of $100000 with the tax rate of 30% Thus the rate of tax is increasing with the increase in income thus tax structure followed in this question is Progressive Tax. Answer: b. Progressive Tax.

Business

Economics

Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 10% $1,000 A Family $50,000 20% $10,000 Family $100,000 30% $30,000 Identify the tax structure based on the tax chart. Proportional Tax Progressive Tax Regressive Tax

Percent of Income Paid in Total amount Income Tax of Tax Paid Family $10,000 10% $1,000 A Family $50,000 20% $10,000 Family $100,000 30% $30,000 Identify the tax structure based on the tax chart. Proportional Tax Progressive Tax Regressive Tax

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Describe Progressive taxation. And Regressive taxation
Why are sales taxes considered regressive?
A new elected government want to reform its tax system. As an economist you are hired to advise the government how to design a better tax system. Give your recommendation on factors that government need to consider if they want to implement the better tax system. Add specific example or case for each factor you recommend to government
5 The largest source of government revenues is ________. Select one: a. personal income taxes b. Social Security taxes c. corporate income taxes
A regressive tax is a tax for which people with lower incomes Group of answer choices pay a lower percentage of their incomes in tax than do people with higher incomes. pay a higher percentage of their incomes in tax than do people with higher incomes. pay the same percentage of their incomes in tax as do people with higher incomes. do not have to pay unless their incomes exceeds a certain amount.
Draw a curve that shows the relationship between the tax rate and the amount of tax revenue collected. The relationship between the tax rate and the amount of tax revenue collected is called the This curve shows that OA. Reagan; tax cuts can increase tax revenue B. maximum tax rate; taxes can never be too low OC. tax revenue; a higher tax rate brings greater tax revenue OD. Laffer, tax cuts can increase tax revenue curve.
Excise tax is not applied to: Excise tax is not applied to: None of the answer choices are correct. Wine Distilled spirits Beer Doughnuts
Given the market value of indirect taxes are 630 and subsidies are 34 what will be the value of net indirect taxes?
QUESTION 3 What tax per item t will maximize total tax reveue T = tq if the demand is p+q3D1000 and supply 92 +2.5q+920 30 is
How do corporations avoid paying their taxes? What is the government doing about this and do you agree or disagree with the government's actions?
Find the missing values for [ a ] through [ j ] below. [ j ] Which tax structure above is progressive? Which tax structure above is regressive?
12. Study Questions and Problems #12 Consider the first three columns of the following table, which outline a hypothetical Negative Income Tax plan. Complete the last column of the table. Family Income Negative Tax Positive Tax Total After-Tax Income $0 $10,000 $0 S 5,000 $7,500 0 S 10,000 $5,000 0 S 15,000 $2,500 0 S 20,000 0 0 S 25,000 0 -$2,500 S 30,000 -$5,000 S 35,000 -$7,500 S