5
QuizMultiple Choice

N/A — Exam

Question 5 • Personal Finance

Which statement best supports the idea that the United States has a progressive income tax?

Answer
A
The more money someone makes, the higher the percentage he or she pays in taxes.
B
Americans pay higher taxes than single-wage earners in other countries.
C
Tax percentages are evenly distributed across the tax brackets.
D
Single-wage earners are taxed at the same percentage, regardless of income.

Explanation

A progressive income tax uses higher tax rates as income rises. Thus, someone who makes more money pays a higher percentage of their income in taxes, which is the statement in choice A. A flat tax would instead charge the same percentage regardless of income, as described in choice D.

AI-written and checked against the verified answer.

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