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OpenStudy (anonymous):

How is the federal income tax a progressive tax question? A The higher the income a person has, the higher the percentage that person pays in tax. B A person with a higher income pays more money in taxes, although the percentage he or she pays as text is less. C To marry people who filed their taxes together will pay more taxes than a single person will D Children pay no taxes, regardless of whether they earn a large a Income

OpenStudy (anonymous):

It's either A or B I had this one .

OpenStudy (anonymous):

@Theevilgenius_ what do you think?

OpenStudy (anonymous):

Hey what do you think? If you don't know check this out: The tax is progressive with respect to its base; in other words, the more taxable income an individual has, the higher the percentage of that amount that is paid as tax. The standard deduction and personal exemptions are progressive features, since they have the effect of creating a minimum amount of gross income that is free of tax; in effect, a zero bracket (which is what they were briefly called). However, the progressivity is offset in whole or in part by several factors. One is the low rate of tax imposed on capital gain, even for the highest income taxpayers. Another is the ability of high-income individuals to shelter large amounts of income from tax in one way or another. A major regressive factor is the social security tax, which is imposed on the very first dollar of income, and takes a much higher percentage of income from low-income taxpayers than it does from the wealthy. Finally, most definitions of progressivity do not take into account what might be called the marginal utility of money - a dollar of income taken away from a poor person hurts a lot more than the same dollar taken from a rich person. The alternative minimum tax is something of a wildcard, which was intended to increase progressivity by imposing a lower rate of tax on a broader base. It seems to have had the effect of causing a bulge in the effective rate for the middle class. So what do you think?

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