The U.S. income tax is currently a __________ tax.

• A. flat
• B. proportional
• C. progressive
• D. regressive

Answer: (C)

Verified step by step guidance

1. Understand the definitions of the types of taxes: A flat tax is a constant tax rate applied to all income levels; a proportional tax means the tax rate is the same percentage regardless of income; a progressive tax means the tax rate increases as income increases; a regressive tax means the tax rate decreases as income increases.
2. Recall that the U.S. income tax system imposes higher tax rates on higher income brackets, meaning people with higher incomes pay a larger percentage of their income in taxes.
3. Recognize that this structure, where tax rates increase with income, fits the definition of a progressive tax.
4. Eliminate the other options (flat, proportional, regressive) because they do not describe a system where tax rates rise with income.
5. Conclude that the U.S. income tax is a progressive tax based on the increasing tax rates for higher income levels.