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Chapter 6: Q.4 (page 139)

Refer to the table in Problem 6-3 when answering the following questions. Show your work, and explain briefly.

a. Does Christino experience progressive, proportional, or regressive taxation?

b. Does Jarius experience progressive, proportional, or regressive taxation?

c. Does Meg experience progressive, proportional,

or regressive taxation?

Short Answer

Expert verified

Christino, Jarius, and Meg experience Progressives taxation.

Step by step solution

01

Step 1. Definitions 

Progressive tax— a tax system that takes lower percentage of tax rate from low-income groups than high-income groups.

Proportional tax— a tax System that takes the equal percentage of tax from all the income groups.

Regressive tax—a tax system that takes higher percentage of tax rate from low-income groups than high-income groups.

02

Step 2. Explanation (a)

Christino experience Progressive taxation because Progressive tax isa tax system that takes lower percentage of tax rate from low-income groups than high-income groups.

03

Step 3. Explanation (b)

Jarius experience Progressive taxation becauseProgressive tax isa tax system that takes lower percentage of tax rate from low-income groups than high-income groups.

04

Step 4. Explanation (c)

Meg experience Progressive taxation becauseProgressive tax isa tax system that takes lower percentage of tax rate from low-income groups than high-income groups.

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Most popular questions from this chapter

Understand the key factors influencing the relationship between tax rates and the tax revenues governments collect.

Why do you suppose that economists commonly refer to the elimination of all disability payments from the people able to work part time as a 'tax' imposed on disabled individual who is willing and able to earn part time income.

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