Question 7 Which of the following taxes is regressive? a a tax of 25% on the first $100,000 of income and of 20% on any additional income b a tax of 15% on capital gains and interest income c a tax of 50% on inheritance income d a tax of 20% on the first $100,000 of income and 30% on any additional income
Question 7 Which of the following taxes is regressive? a a tax of 25% on the first $100,000 of income and of 20% on any additional income b a tax of 15% on capital gains and interest income c a tax of 50% on inheritance income d a tax of 20% on the first $100,000 of income and 30% on any additional income
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 7
Which of the following taxes is regressive?
a
a tax of 25% on the first $100,000 of income and of 20% on any additional income
b
a tax of 15% on capital gains and interest income
c
a tax of 50% on inheritance income
d
a tax of 20% on the first $100,000 of income and 30% on any additional income
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Taxes are the monetary amount that a citizen of the country has to pay to its Government. Later, government uses tax as a revenue and increase its spending to develop the country and the people.
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