Question

What is the reason for using progressive taxes on income?
A) Lower-income individuals have a lower cost of living and can afford to pay more in taxes.

B) Higher-income individuals are more likely to spend their income on consumption of goods, and paying more taxes discourages spending.

C) Higher-income individuals are more likely to afford their standard of living and can afford to pay more in taxes.

D) Individuals of all incomes pay the same percentage of their income toward the tax, making it a fair tax.

Answer 1

The reason for the progressive tax is because the Higher-income individuals can afford a good standard of living and can pay more in taxes.

What is a progressive tax?

This is a type of tax imposed based on a taxpayer's ability to pay, that is, the higher the income. the higher the taxrate applicable to the taxpayer's income.

The reason for progressive tax is that a tax would be a disproportionate burden for people with low incomes.

Therefpre, the Option C is correct.

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