Based on the chart describing a progressive tax system, the individual who benefits most from this policy is probably:

• A. A high-income earner
• B. A middle-income earner
• C. A low-income earner
• D. A business owner

Answer: (C)

Verified step by step guidance

1. Understand the concept of a progressive tax system: it is designed so that the tax rate increases as the taxpayer's income increases, meaning higher-income earners pay a larger percentage of their income in taxes compared to lower-income earners.
2. Analyze how the tax burden is distributed across different income groups: in a progressive system, low-income earners pay a smaller proportion of their income in taxes, which can leave them with more disposable income relative to a flat or regressive tax system.
3. Consider the benefits of the policy for each group: low-income earners benefit the most because the tax system reduces their tax burden and may provide additional social benefits funded by the higher taxes paid by wealthier individuals.
4. Recognize that high-income earners pay more taxes proportionally, so they do not benefit as much from the progressive tax system; middle-income earners experience moderate tax rates, and business owners' benefits depend on their income classification.
5. Conclude that the individual who benefits most from a progressive tax system is typically a low-income earner, as the system is designed to reduce their tax burden and promote income redistribution.