Asked by kyaira jackson on Jul 21, 2024

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A tax rate that increases as the tax base increases is an example of what kind of tax rate structure?

A) Progressive.
B) Proportional.
C) Regressive.
D) Recessive.

Tax Rate Structure

The framework defining how different levels of income are taxed at various rates, often progressive, where higher income incurs higher tax rates.

Progressive

A tax system in which the tax rate increases as the taxable amount increases, placing a larger burden on those who have higher incomes.

Proportional

A tax system where the tax rate remains constant as the taxable amount increases.

  • Identify the distinctions among progressive, proportional, and regressive tax rate structures.
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DT
Dahlia ThomasJul 25, 2024
Final Answer :
A
Explanation :
A tax rate that increases as the tax base increases is a progressive tax rate structure. This means that individuals with higher incomes or higher levels of wealth will pay a higher percentage of their income or wealth in taxes compared to those with lower incomes or levels of wealth. This is seen as a way to achieve greater income equality and distribute the burden of taxation more fairly.