WGU C239 PA | 100 Questions and Answers with complete solution

An individual has taxable income of $60,000. The first $20,000 is taxed at 20%, the next $20,000 is taxed at 20%, and all income above $40,000 is taxed at 20%.Which tax structure is being applied to the individual's taxable income? Base Regressive Progressive Proportional - Proportional Which federal income tax structure imposes an increasing marginal tax rate as the tax base increases? Regressive tax Incremental tax Progressive tax Proportional tax - Progressive What would a graph look like for Progressive, Proportional, Incremental, and Regressive tax structures? - Progressive- ascending Proportional- flat line Incremental- stair-steps Regressive- descending What describes a gift tax? Tax on the retail sale of particular products Tax on the fair market value of wealth transfers Tax on the retail price of goods and services Tax on income earned by an individual - Tax on the fair market value of wealth transfers What is a key element of an economy tax structure?Attracts and stimulates investment Helps ensure equality and ability to pay Assists in reducing unemployment and inflation Requires minimal compliance and administration costs - Requires minimal compliance and administration costs