Question

types of taxes in the united states
all taxes break down into two basic types: progressive taxes and regressive taxes, which may
be unpopular but are important for funding the government.
progressive taxes
taxes that change based on a person’s income

• income tax
• rates are determined by tax brackets (level of income)
• rate increases as a person’s income increases
• rate decreases if a person has a lower income

regressive taxes
taxes that stay the same for everyone regardless of income

• often passed by legislatures
• sales tax
• e.g. a percentage - based tax on all retail purchases
• sin tax
• tax on an item deemed harmful to stop people from using it, e.g. tobacco and alcohol
• often used to fund a related public project, such as public health initiatives
• property tax
• two homes in the same jurisdiction will be taxed at the same percentage

which type of tax can vary based on an individual’s income?

• progressive tax
• regressive tax
• property tax

Explanation:

The provided material defines progressive taxes as taxes that change based on an individual's income, with rates determined by income brackets (increasing as income rises and decreasing as income falls). Regressive taxes and property taxes are fixed regardless of income level.

Answer:

progressive tax