A government is comparing four proposed personal tax plans. Table 1 shows the percentage of annual income that households would keep after paying tax under each plan.
| Annual household income | Plan J | Plan K | Plan L | Plan M |
|---|---|---|---|---|
| £24,000 | 96% | 81% | 90% | 97% |
| £48,000 | 91% | 88% | 90% | 92% |
| £96,000 | 83% | 93% | 90% | 86% |
Which statement correctly identifies the regressive plan from the data in Table 1?
Plan K, because the percentage of income kept rises as income rises
Plan J, because the percentage of income kept falls as income rises
Plan M, because the lowest-income household keeps the highest percentage
Plan L, because every household keeps the same percentage of income
75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.