Question

How is the federal income tax a progressive tax?

A. The higher the income a person has, the higher the percentage that person pays in tax.
B. A person with a higher income pays more tax, but the percentage is less.
C. Two married people who file their taxes together will pay more taxes than a single person will.
D. Children pay no taxes, regardless of whether they earn a large income.

Answer 1

A progressive tax takes a larger percentage of income from high-income groups than from low-income groups and is based on the concept of ability to pay. A progressive tax system might, for example, tax low-income taxpayers at 10 percent, middle-income taxpayers at 15 percent and high-income taxpayers at 30 percent.