Tax rate structure of the payroll tax


A payroll tax taxes a worker's wages at 14 percent until the worker earns $60,000 per year. All labor earnings in excess of $60,000 are not subject to tax. The tax rate structure of the payroll tax is therefore ( )

a) progressive

b) regressive

c) flat-rate

d) could not tell from the information given

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Finance Basics: Tax rate structure of the payroll tax
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