Answer to Question #134870 in Macroeconomics for December

Question

Question 14 is based on the table below which shows information about income tax paid by Susan
in the last four years:
Year Salary Tax A Tax B
2019 R500 000 R 75 000 R22 500
2018 R300 000 R48 000 R19 500
2017 R200 000 R34 000 R15 500
2016 R90 000 R16 200 R10 800
14. Which of the following is correct?
[1] Tax A is an example of a regressive tax.
[2] Tax B is an example of a progressive tax.
[3] Tax A is an example of a proportional tax.
[4] Tax B is an example of a proportional tax.

Answer 1

ANSWER:

OPTION 2 TAX B is a progressive tax