Question

types of economies, business cycle, taxes, fiscal/monetary test
which of the statements about the current u.s. tax system is true?
○ everyone in the us who makes more than the minimum income requirement pays one flat tax rate.
○ our current system is described as being a regressive system because it imposes higher rates on those who earn less.
○ our income tax system is a progressive system because people with higher incomes pay a higher percentage of tax on their income
○ your friend tells you his marginal tax rate is 22%. that means that he pays 22% on all of his income.

Explanation:

The U.S. income - tax system is progressive. In a progressive tax system, higher - income earners pay a higher percentage of their income in taxes. A flat tax rate is not used in the U.S. income - tax system for those above the minimum income requirement. The U.S. system is not regressive as regressive systems tax lower - income earners at a higher rate. Marginal tax rate applies only to the income within a certain tax bracket, not all income.

Answer:

Our income tax system is a progressive system because people with higher incomes pay a higher percentage of tax on their income.