Question

Which of the following examples BEST illustrates taxation using the progressive principle?

All citizens with jobs are taxed 1.45% of their income for Medicare.

The state of Florida increases the sales tax to 7.5% for non-essential goods and services.

The Jacksonville City Council votes to increase the property tax milage rate for all property owners in the city.

Zach who makes $50,000 a year is taxed at a marginal rate of 25% while Javier who makes $500,000 a year is taxed at a marginal rate of 39.6%.

Answer 1

Answer:

A. All citizens with jobs are taxed 1.45% of their income for Medicare.

Explanation:

A progressive tax is when the tax rate you pay increases as your income rises. Federal income tax is an example of progressive taxation. I chose this answer because citzens with jobs are being taxed as their income for Medicare rises.

Therefore, A would be the correct answer. I'm doing the exam as well so I hope this is correct!

Answer 2

A. All citizens with jobs are taxed 1.45% of their income for Medicare.