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Which tax is regressive? O Medicare tax. O Fuel tax. O Income tax. O Real estate tax.

Which tax is regressive? O Medicare tax. O Fuel tax. O Income tax. O Real estate tax.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4.1 Understanding Your Taxes_ Ava has a gross income of $20,000, and Hal has a gross income of $350,000. Ava's effective tax rate is 14%, and Hal's effective tax rate is 28%. Ava lives in a two-bedroom ranch, while Hal lives in a six-bedroom colonial. Despite the income disparity, they share the same commute. The town's real estate tax is 1.7%. The state's sales tax is 6.35% and the fuel surcharge is $0.59 per gallon. Which tax is regressive? O Medicare tax. O Fuel tax. O Income tax. O Real estate tax. Save for Later Submit Answer
Transcribed Image Text:4.1 Understanding Your Taxes_ Ava has a gross income of $20,000, and Hal has a gross income of $350,000. Ava's effective tax rate is 14%, and Hal's effective tax rate is 28%. Ava lives in a two-bedroom ranch, while Hal lives in a six-bedroom colonial. Despite the income disparity, they share the same commute. The town's real estate tax is 1.7%. The state's sales tax is 6.35% and the fuel surcharge is $0.59 per gallon. Which tax is regressive? O Medicare tax. O Fuel tax. O Income tax. O Real estate tax. Save for Later Submit Answer
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