CIMA Exam CIMAPRA19-F01-1 Topic 6 Question 82 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 82
Topic #: 6

[All CIMAPRA19-F01-1 Questions]

Which of the following is an example of a progressive tax?

APersonal income tax of 10% on earnings up to $10,000, then at 15% over $10,001

BCorporate income tax of 20% on earnings up to $100,000, then at 10% over $100,000

CCorporate income tax of 20% on all earnings

DPersonal income tax of 10% and corporate income tax of 20%

Show Suggested Answer

Suggested Answer: B

by Mirta at Mar 07, 2024, 04:34 AM

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6 days ago

Option A seems like a progressive tax to me. The rate increases as the income level goes up.

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10 days ago

I'm not sure, but I think A makes sense because it follows the principle of a progressive tax.

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17 days ago

I agree with Hayley, because it has a higher tax rate for higher earnings.

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21 days ago

I think the answer is A.

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