Compared with US citizens of higher incomes, those of lower incomes are:

• A. more likely to experience limited access to healthcare and education
• B. equally likely to accumulate wealth over time
• C. less likely to be affected by changes in minimum wage laws
• D. more likely to pay a higher percentage of their income in federal taxes

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the context of income levels and their impact on access to resources and economic outcomes. Higher-income individuals generally have more financial stability and access to services compared to lower-income individuals.
2. Step 2: Analyze the likelihood of limited access to healthcare and education. Lower-income individuals often face barriers such as affordability and availability, making them more likely to experience limited access compared to higher-income individuals.
3. Step 3: Consider wealth accumulation over time. Higher-income individuals typically have more opportunities to save and invest, so lower-income individuals are less likely to accumulate wealth at the same rate.
4. Step 4: Evaluate the effect of minimum wage laws. Changes in minimum wage tend to have a more significant impact on lower-income workers, as they are more likely to earn wages near the minimum wage level.
5. Step 5: Examine tax burdens. Lower-income individuals often pay a smaller absolute amount in federal taxes but may pay a higher effective tax rate through payroll and sales taxes, though generally, the federal income tax system is progressive, meaning higher-income individuals pay a higher percentage.