Which of the following best defines a graduated income tax?
an income tax that increases with a person’s level of education
an income tax that replaces an earlier tax, such as a tariff
a tax in which higher earners pay more than lower earners
a tax that is scheduled to increase with time

The correct answer is:

A tax in which higher earners pay more than lower earners.

Explanation:

A graduated income tax, also known as progressive tax increases according to the person's income; people that have lower income pay a lower percentage on taxes than people with higher income.

People in favor of a graduated income tax argue that the burden of higher taxes only fall on people who can afford to pay them, while people against progressive taxes argue that it punishes people who work harder and have a higher income. Progressive taxes are applied in the United States to people and states, while a regressive tax where all people pay the same tax is applied to products.

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