How would a single person with a taxable income of $15,000 per year and a single person with a taxable income of $300,000 per year be treated differently-----and similarly-----in terms of national taxes?.

Respuesta :

Since the national tax is based on a progressive tax system, those with high incomes will pay a higher tax rate, and vice versa, hence people will be treated on the basis of income.

What is the progressive tax method?

A progressive tax is based on the idea of ability to pay and takes a larger percentage of income from high-income groups than from low-income groups. For instance, a progressive tax system might impose a 10% tax on low-income taxpayers, a 15% tax on middle-class taxpayers, and a 30% tax on high-income taxpayers.

Proponents of the progressive system assert that higher salaries allow wealthy individuals to pay higher taxes and that this is the most equitable system because it lessens the tax burden on the underprivileged. This method of taxation imposes a tax rate based on the capacity of the taxpayer to pay it. A higher rate was applied under the progressive tax, and a lower rate was applied to those with lower incomes.

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