jake earned $15,000 and paid $1,500 of income tax, while jill earned $50,000 and paid $4,000 of income tax. the structure of the tax their income is subject to is proportional
A progressive tax is a tax system in which rates rise as taxable income rises. Capital income taxes, tax on interest generated, rental profits, estate tax, and tax credits are all examples of progressive taxes.
A progressive tax is distinguished by a greater-than-proportional increase in tax liability compared to an increase in income, whereas a regressive tax is distinguished by a less-than-proportional increase in the relative burden.
Examples of Regressive Taxes include, among other things, sales taxes, property taxes, excise taxes, tariffs, and government fees.
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