Progressive Tax Increases Rate with Income

Steps:

• Recall progressive tax: higher income faces higher tax rates, reducing inequality.
• Analyze each option's impact on after-tax income across income levels.
• Compare how changes affect low vs. high earners' tax burdens.
• Identify the change that most steeply raises rates for high incomes.

Why C is correct:

• It raises marginal tax rates progressively, so higher earners pay a larger share, per the definition of progressive taxation.

Why the others are wrong:

• A: Flat rate change affects all incomes equally, not progressive.
• B: Reduces rates overall, making system less progressive.
• D: Exempts low incomes but doesn't increase high-income rates enough.

Not enough information on graph details to fully verify.

Final answer: C