Why are the real income levels of americans affected by rising prices?

"Real Wages" are wages that are adjusted for inflation and rising prices. As prices rise, people are able to buy less and less with their "nominal" (aka un-adjusted)  wages.

One example is gas for your car. If you make $1000 a month and gas goes up from $2.50 to $3, your un-adjusted wages stay the same (you still make $1000) but you can't buy as much of other things because your "real" wages have effectively gone down due to the price increase of gas.

a progressive tax is a tax that imposes a lower tax rate on low-income earners compared to those with a higher income, making it based on the taxpayer's ability to pay. that means it takes a bigger percentage from high income earners than it does from low income people.

answera major piece of legislation affecting the financial industry and containing significant privacy provisions for individuals;