Question

where monica lives, she makes a lot of money, so she is required to pay a lot of taxes. wealthier people end up paying more of their income to taxes than people who dont make as much money. which type of tax system does monicas country most likely use?

○ inheritance

○ flat

○ regressive

○ progressive

question 12
3 pts
before mohammad and fatima seek help from their tax professional, they have to total the income they earned in the past year. they have to include all of their investment dividends and any income they earned from their jobs. what information does this best represent?

○ their taxable income

○ their adjusted gross income

○ their gross income

○ their inheritance income

Explanation:

First Question (Tax System)

• Inheritance tax is on inherited assets, not income - related like the scenario.
• A flat tax has a constant rate for all income levels, so wealthier and less - wealthy pay the same rate proportionally, which doesn't match "wealthier pay more of income".
• A regressive tax means lower - income groups pay a higher proportion of their income in taxes, opposite of the scenario.
• A progressive tax system has higher tax rates for higher income levels, so wealthier people pay a larger share of their income in taxes, matching Monica's situation.

• Taxable income is after deductions and adjustments, not just totaled income.
• Adjusted gross income is gross income minus certain adjustments, but here we just have the total of job and investment dividend income.
• Gross income is the total income earned from all sources before any deductions or adjustments, which matches the total of job income and investment dividends.
• Inheritance income is from inherited assets, not job or investment dividends.

Answer:

D. progressive

Second Question (Income Type)