Question

For purposes of assessing income taxes, there are three official income levels for workers in a small country: high, medium, and low.

The table to the right gives the marginal tax rate for the last hour on the job during a 40-hour workweek for each of these three worker types.

Based only on this information, this nations income tax system appears to be

A. progressive

B. proportional

C. regressive

Worker type Low-income worker Medium-income worker High-income worker Marginal tax rate 25 percent 20 percent 15 percent

Answer 1

As we can see from the table that when the income increases, the tax rate on the worker keeps decreasing, therefore, the low-income worker pays a higher tax than a high-income worker.

This tax system is Regressive

Answer 2

Its regressive