There are 4 households in a locality. The annual income of the first household $20,000, the annual income of the second household is $47,000, the annual income of the third household is S50,000, and the annual income of the fourth houschold is $71,000. If the income tax rate for the fourth household is higher than 1. the income tax rate for the second household, it can be inferred that the government follows a income tax system. A) regressive B) progressive C) value-added D) proportional

b) The progressive income tax system

Explanation:

The tax is compulsory contribution levied by the authority in a territory on goods, services, income and profit.

Proportional income tax :Income tax is said to be proportional where the same tax rate is paid by all irrespective of their income bracket.

A progressive income tax is that where the tax rate becomes higher for those income earners in  the high income bracket. The tax rates on every dollar earned becomes higher with increase in income.

The regressive income tax is where a lower percentage is paid as tax as the income income increases. Lower rate is paid on additional dollar earned.

The scenario in the question falls under the concept of progressive income tax system

B) progressive

Explanation:

Tax rates can be proportional, progressive or regressive:

the answer is: c.that person might be arrested and deported

filling w-4 form incorrectly usually would rise suspicions from government's auditors. when they notice such mistakes, they would send their teams to investigate the situation further.

if those investigation teams believe that the incorrectness is done on purpose (with malicious intent), that person can be arrested or deported