Multiple choice general knowledge

WHAT IS A PROGRESSIVE INCOME TAX SYSTEM?

  1. A TAX SYSTEM THAT ALLOWS DEDUCTIONSON INVESTMENTS

  2. A TAX SYSTEM THAT TAXES HIGHER INCOME AT HIGHER RATES AND LOWER INCOME AT LOWER RATES

  3. A TAX SYSTEM THAT GETS BETTER AS TIMES GOES ON

  4. NONE OF THE ABOVE
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A progressive tax system imposes higher tax rates on higher income brackets. As income increases beyond thresholds, the additional income is taxed at successively higher rates. This is the fundamental design of most modern income tax systems, including the US federal income tax, to distribute tax burden by ability to pay.

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