34 Which of the statements about the current U.S. tax system is TRUE? Our current system is described as being a progressive system because it imposes higher rates on those who earn more. Your friend tells you his marginal taxrate is 22% That means that he pays 22% on all of his income. Everyone in the US who makes more than the minimum income requirement pays one flat taxrate. Our current system is described as being a regressive system because it imposes higher rates on those who earn less. Multiple Choice 1 point

## Step 1<br />The problem is asking us to identify the correct statement about the current U.S. tax system. The U.S. tax system is a progressive one, which means that the tax rate increases as the taxable amount increases. This is done to distribute the tax burden more evenly across different income levels.<br /><br />## Step 2<br />The term "marginal tax rate" refers to the rate of tax applied to your income for each tax bracket in which you qualify. This means that not all of your income is taxed at the same rate, but rather different portions of your income are taxed at different rates.<br /><br />## Step 3<br />The statement that everyone in the U.S. who makes more than the minimum income requirement pays one flat tax rate is incorrect. This is because the U.S. tax system is not a flat tax system, but a progressive one.<br /><br />## Step 4<br />The statement that the current system is described as being a regressive system because it imposes higher rates on those who earn less is also incorrect. A regressive tax system would mean that lower-income individuals pay a higher percentage of their income in taxes than higher-income individuals, which is not the case in the U.S. tax system.