Drag each label to the correct location.
Identify the type of tax described in each scenario.
Situation
Type of Conflict
Hola
One family makes $50,000 a year, and
another family makes $100,000. Both
families buy the same car at the same
dealership, and both families pay $1,500
in sales tax.
At federal income tax time, two
neighbors pay their taxes. As they are
talking one day, they realize that they
are not in the same income tax bracket,
so one neighbor pays a higher
percentage of his income in taxes than
the other does.
Two people who make very different
incomes pay the same percentage
of their income in taxes.

Regressive conflict/ tax refers to a scenario where people earning less pay more of their income in taxes. In this scenario, the family making $50,000 paid:

= 1,500 / 50,000

= 3% of their income

Family making $100,000 only paid:

= 1,500 / 100,000

= 1.5%

The low earning family paid more so this is regressive.

b. PROGRESSIVE

Progressive tax refers to people in higher income tax brackets paying a higher percentage of their taxes. This is the scenario here so this is a progressive conflict.

c. PROPORTIONAL

As the term implies, proportional tax refers to people paying by a certain proportion of their income. With these two paying the same percentage on their income, they are experiencing a proportional conflict.

kmora3495 kmora3495 · Answer 2 · 2021-06-15T16:23:08+02:00

Answer:

A. One family makes $50,000 a year, and another family makes $10,000. Both families buy the same car at the same dealership, and both families pay $1,500 in sales tax. A. Regressive

B. At federal income tax, two neighbors pay their taxes. As they are talking one day, they realize that they are not in the same income tax bracket, so one neighbor pays a higher tax percentage of his income in taxes than the others. B. Progressive

C. Two people who make very different incomes pay the same percentage of their income taxes. C. Proportional

Explanation: Edmentum/Plato Answer