What's the purpose of income tax brackets?
Question 6c of 10 - Taxes
- Maximum Attempts: 1
- Question Type: Multiple Choice
- Maximum Score: 2
- Question: What's the purpose of income tax brackets?
- To enable the progressive taxation of income
- To maintain a minimum income level
- To distribute social support to the needy
- To punish the use of income for harmful activities
The correct answer is: To enable the progressive taxation of income. Progressive taxation requires taking a larger percentage from the income of high-income people, so there needs to be a method of correlating income levels and taxation percentages.