For purpose of assessing income taxes, there are three official income levels for works in a small country: high, medium and low. For the last hour on the job during 40-hour workweek, a high income worker pays a marginal income tax rate of 15 percent; a medium income worker pays a marginal tax rate of 20 percent and a low income worker assessed a 25 percent marginal income tax rate. Based only on this information, does this
Concept introduction:
Progressive tax system: A Progressive tax system means that a higher rate of tax is charged to people of the higher income groups.
Proportional tax system: A Proportional tax system means that the incomes are taxed at the same rate for all income groups.
Regressive tax system: A Regressive tax system means that a higher rate of tax is charged to people of the lower income groups.
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