Asked by Alison Vidas on May 26, 2024
Verified
A progressive tax system taxes incremental income at progressively higher rates.
Progressive Tax System
A tax system where the tax rate increases as the taxable amount or income increases.
Incremental Income
Additional income generated from a specific action or decision, compared to a scenario where the action is not taken.
- Differentiate among progressive, regressive, and flat tax structures and their effects on individuals who pay taxes.
Verified Answer
OG
Oopeve GosoljitMay 26, 2024
Final Answer :
True
Explanation :
A progressive tax system is designed to tax higher incomes at higher rates, while lower incomes are taxed at lower rates or not at all. This is intended to reduce income inequality and ensure everyone pays their fair share based on their ability to pay.
Learning Objectives
- Differentiate among progressive, regressive, and flat tax structures and their effects on individuals who pay taxes.