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Yvonne earned $75,000 and paid $4,500 of income tax; jasmine earned $43,000 and paid $3,000 of income tax. the tax rate structure they are subject to is Regressive.
Regressive taxes are those whose average tax burden decreases as income rises. Low-income taxpayers bear a disproportionately big amount of the tax burden, while middle- and high-income taxpayers bear an inequitably small portion.
Knowledge of Regressive Taxes
Because regressive taxes are applied consistently to all circumstances, regardless of the taxpayer, they have a greater negative impact on low-income individuals than they do on high-income individuals. Taxing everyone at the same rate is viewed as unfair in some situations, despite the fact that it may be reasonable in others. While other forms of taxes are applied evenly, most income tax systems use a progressive schedule that taxes high incomes at a greater percentage rate than low ones.
We pay some taxes that are seen as regressive taxes even though the United States has a progressive income taxation system, which means higher income earners pay a higher percentage of taxes each year compared to those with a lower income.
To know more about 'Regressive Taxes', visit: https://brainly.com/question/21404149
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